① The market generally expects the Bank of England to raise interest rates by 25 basis points to 4%. This will be the first rate hike in more than three years, mainly affected by the rise in energy prices caused by the US-Iran conflict. ② Concerned about differences in voting within the Bank of England, it is expected that there will be a majority of members supporting interest rate hikes, far exceeding the situation where only 3 people supported interest rate hikes at the September meeting. ③ Pay attention to whether the Bank of England's forward-looking guidelines will be adjusted in wording. The market is clearly divided on the pace of subsequent interest rate hikes. Institutions expect that the Bank of England may moderately suppress market expectations of rapid contraction. ④ Follow the Bank of England's latest forecast for inflation and economic growth. Based on the situation in the Middle East and energy prices, the market expects the Bank of England to drastically raise its inflation forecast while slightly raising this year's GDP growth forecast. ⑤ Pay attention to the Bank of England's judgment on wage growth and the labor market. There is currently no obvious second-round effect, but the committee will evaluate the risk of a pay-price spiral.

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