[Mitsubishi UFJ: Bank of England Expected to Raise Rates by 25 Basis Points at Next Meeting] Jin10 News, October 22 – Mitsubishi UFJ predicts that the Bank of England will raise interest rates by 25 basis points at its next meeting and hike rates again in February next year, ultimately pushing the rate to a peak of 4.25%. As rising energy prices gradually pass through to household bills, the overall inflation rate in the UK is expected to exceed 4% in the coming months. Mitsubishi UFJ stated that energy prices have remained high for longer than anticipated, with further increases in recent months. A stabilizing labor market, robust economic growth, and persistently high underlying inflation make it difficult for the Bank of England to overlook this shock. The bank estimates that the UK's GDP growth rate for the third quarter will be approximately 0.65% quarter-on-quarter and forecasts economic growth of 1.5% and 1.4% in 2026 and 2027, respectively, exceeding IMF projections. Rising borrowing costs may have already compressed the fiscal space ahead of the UK budget announcement to around £15 billion.