UBS and the Royal Bank of Canada's Capital Markets Department currently anticipate that the Bank of England will raise interest rates by 25 basis points at its next meeting in November due to the continued risk of high inflation brought about by rising energy prices. Anna Titareva and others wrote in Thursday's research report: “We believe that the Bank of England will conclude that the cost of high inflation and possible damage to the central bank's credibility is higher than the current tightening policy, and then it is discovered that the continuation of inflation falls short of expectations.” The bank currently expects the Bank of England to raise interest rates by 25 basis points each in November and February; previously, it predicted that interest rates would be cut in February and April. The report said that this rate hike is not the beginning of a cycle of austerity, but rather an “adjustment” operation aimed at releasing the central bank to respond positively to signals. Kahal Kennedy and Megum Mušić of the Royal Bank of Canada stated in the research report that since the situation in the Strait of Hormuz shows no signs of reaching an agreement, “there are no triggers for the fall in energy prices.” “If the situation cannot be resolved, high energy prices will enter the ninth month by the time the Bank of England meets on November 5.” The bank previously predicted that the Bank of England would keep the 3.75% interest rate unchanged until the end of next year.

UBS and the Royal Bank of Canada's Capital Markets Department currently anticipate that the Bank of England will raise interest rates by 25 basis points at its next meeting in November due to the continued risk of high inflation brought about by rising energy prices. Anna Titareva and others wrote in Thursday's research report: “We believe that the Bank of England will conclude that the cost of high inflation and possible damage to the central bank's credibility is higher than the current tightening policy, and then it is discovered that the continuation of inflation falls short of expectations.” The bank currently expects the Bank of England to raise interest rates by 25 basis points each in November and February; previously, it predicted that interest rates would be cut in February and April. The report said that this rate hike is not the beginning of a cycle of austerity, but rather an “adjustment” operation aimed at releasing the central bank to respond positively to signals. Kahal Kennedy and Megum Mušić of the Royal Bank of Canada stated in the research report that since the situation in the Strait of Hormuz shows no signs of reaching an agreement, “there are no triggers for the fall in energy prices.” “If the situation cannot be resolved, high energy prices will enter the ninth month by the time the Bank of England meets on November 5.” The bank previously predicted that the Bank of England would keep the 3.75% interest rate unchanged until the end of next year.