UBS Sees Bank of England Terminal Rate at 4.25% or Higher

Cointime reports: UBS strategists expect the Bank of England to raise rates again in February, lifting the terminal rate to 4.25%, after the central bank signaled further tightening on Thursday by forecasting inflation near 5% by mid-2027. UBS said this implies at least one more 25 basis-point hike and does not rule out further increases. LSEG data show markets have fully priced two cumulative hikes by mid-2027.