Paul Dales, chief UK economist at consultancy Capital Economics, said a rise in the BoE’s benchmark rate in November could provide enough insurance against the risk of higher energy prices being passed on by companies in the form of higher prices for goods and services and pushing up wages. Assuming that energy prices fall back next year, any “second-round” effects would be muted, he said, meaning policymakers could start cutting rates in late 2027 and into 2028, eventually reaching 3.5 per cent. “We don’t think this [upcoming vote] will mark the start of a series of rate hikes that keep rates high for a couple of years, as investors expect,” he added.