Bank of England Expected to Raise Key Interest Rate to 4.00 Percent

The Bank of England is widely anticipated to lift its benchmark interest rate by 25 basis points from 3.75% to 4.00% on Thursday, marking its first hike in more than three years. The prospective decision follows an acceleration in UK CPI inflation to 3.5% in September, up from 3.1% in August and exceeding the central bank's 2.0% target. Rising energy and fuel costs have driven the price pressures, though officials may offer cautious guidance on future tightening, with economists seeing rates peaking near 4.25% in early 2027.