• Groupama Asset Management expects another preventive Bank of England rate increase of 25 basis points in February 2027, taking rates to 4.25%.
• The forecast hinges on the energy shock feeding into wages and services prices; it would not signal a new tightening cycle.
• All nine policymakers backed the latest increase as the central bank adopted a firmer stance on inflation risks.
• Inflation projections rose to 4.5% in the first quarter of 2027, reaching about 5% in the second quarter versus September's 3.5% forecast.
• Already restrictive financial conditions, slowing growth and fiscal restraint limit the economy's capacity to absorb prolonged rate increases.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Groupama Asset Management SA published the original content used to generate this news brief on November 06, 2026, and is solely responsible for the information contained therein.