Bank of America Global Research expects the Bank of England to raise interest rates by 25 basis points in November 2026 and February 2027, joining J.P. Morgan, Barclays and UBS Global Research in forecasting hikes. The call reverses BofA's previous expectation that rates would remain unchanged before a cut in November 2027. Higher oil and natural gas prices have increased concerns about persistent inflation, with BofA warning that inflation near 4% early next year could fuel wage growth and broader domestic price pressures. LSEG data shows markets pricing a 67% chance of a November hike and another increase in December. BofA expects only two increases before rate cuts begin in 2028, ultimately taking the policy rate to 3.5%.