Bank of England is expected to hike interest rates by 25 basis points on Thursday to tame an energy-driven inflation surge

Analysts at Bank of America and Rabobank both predict a 7-2 vote split among Monetary Policy Committee members, with doves Swati Dhingra and Alan Taylor expected to dissent.

A second 25bp hike to 4.25% is forecast for February 2027, though analysts warn markets pricing in 100bp of tightening over the coming year are getting ahead of themselves.

UK gilt yields have already climbed above 5%, meaning financial conditions are tightening even before Thursday's decision, giving the MPC cover to signal caution over future moves.