Interest rate forecast for the Bank of England: Could rise to 4 percent

The Bank of England is expected to deliver the first interest rate hike of this cycle, with analysts pointing to a possible increase to 4%, as rising energy costs intensify inflationary pressures in the UK economy. The anticipated move would mark a significant tightening step for the central bank, underscoring how sustained energy-driven price pressures are forcing policymakers to act despite broader economic uncertainty. Investors will watch the BoE's accompanying guidance for signals on the pace of further increases and the balance between combating inflation and supporting growth.