Bank of England expected to raise rates to 4% on Thursday; AI investment boom rewrites "neutral rate" judgment.

Zhitong Finance APP has learned that the market widely expects the Bank of England to raise interest rates by 25 basis points to 4.00% on November 5 (Thursday), which would be the first rate hike since August 2023. Behind this expectation is a quiet shift in the Bank of England's judgment of the "neutral rate": it had previously believed that interest rates were high enough to curb inflation, but now it is no longer so certain.