First rate hike in three years! Bank of England: won't be the last

On Thursday (the 5th) local time, the Bank of England announced an increase in its benchmark interest rate by 25 basis points to 4%, marking the bank's first rate hike since 2023. Although this rate increase met market expectations, the voting outcome was more "hawkish" than had anticipated. Money markets currently expect the Bank of England to cumulatively raise rates by about 76 basis points by the end of 2027, compared to about 67 basis points before the decision; the probability of another rate hike in December has risen from about 30% before the decision to 50%.