EL7.AI
Central BanksMedium•4 November 2026•
1 min read

BoE Expected to Hike Interest Rates Amid Energy-Driven Inflation

Key Facts

1The Bank of England is expected to be the next central bank to hike interest rates following the Fed and the ECB.
2Rate hike expectations are driven by surging energy costs and inflation fears stemming from the US-Iran conflict.

The Bank of England is expected to be the next major central bank to hike interest rates, following recent moves by the Federal Reserve and the ECB. Barron's reported that these expectations are driven by surging energy costs and heightened inflation fears stemming from the conflict between the US and Iran.

Economic data in the UK highlights persistent price pressures, with the Decision Maker Panel (DMP) survey on October 30, 2026, showing year-ahead CPI expectations at 3.4%. Meanwhile, mortgage approvals reached 53.44 on October 29, 2026, falling short of the 54 forecast and reflecting the impact of current borrowing costs on the housing sector.

The Bank of England is scheduled to announce its interest rate decision and release its Inflation Report today, November 5, 2026, with forecasts suggesting a potential hike to 4% from the previous 3.75%. Governor Andrew Bailey is also due to deliver a speech later today to discuss the monetary policy outlook.