Bank of England: Gradual hiking path – Rabobank

Rabobank strategist Stefan Koopman expects the Bank of England’s (BoE) Monetary Policy Committee (MPC) to raise Bank Rate to 4.00% in November 2026 in a 7-2 split, followed by another 25bp hike to 4.25% in February 2027. The report stresses that higher market rates have already tightened conditions, but argues policymakers must now validate pricing. Fiscal policy is seen as a minor offset to the energy-driven inflation shock.