Nine votes in favor of tightening! Bank of England raises rates to 4%, signaling a hawkish stance, with inflation expected to peak at 4.9% next year.

Zhito Finance APP has learned that the Bank of England's rate hike decision landed as scheduled, but the nine votes in favor of a hike showed a stronger consensus for tightening than economists had unanimously expected before the meeting. On November 5, the Bank of England raised its benchmark rate by 25 basis points to 4%; eight members supported that magnitude, while Catherine Mann advocated a 50-basis-point hike. Compared with the pre-meeting consensus of "seven in favor of a hike and two in favor of holding steady," the actual outcome meant all nine members supported tightening. For the market, the new information is that the central bank's concern about inflation persistence has broadened, further raising the threshold for resuming rate cuts in the short term.