Danske Research changes its BoE rate call.

"The BoE raised Bank Rate by 25bp to 4.00%. Vote split 8-1, with Mann preferring a 50bp hike—meaning all members supported tightening. Inflation is expected to reach around 5% by mid-2027. Despite limited evidence of second-round effects, the BoE sees enough price pressure to act,:" Danske notes.

"We change our call and add two further 25bp hikes in February and April, taking Bank Rate to 4.50%, unless a lasting resolution to the conflict is reached," Danske adds.