A Bloomberg Economics machine learning model indicates the Bank of England is highly likely to raise its benchmark rate from 3.75% to 4% at its first monetary policy meeting in February next year.
The model, trained on more than 50 economic and market indicators since the BOE gained independence in 1997, has shown roughly one-half to two-thirds accuracy in predicting actual rate hikes or cuts over the past decade. The study says persistently high oil and gas prices could push inflation toward 4%, increasing pressure on the BOE to tighten monetary policy.
Bloomberg AI Model Signals Possible BOE Rate Hike in February
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