Policymakers from the UK, the United States and the eurozone gathered in London and laid the groundwork for further interest-rate hikes, as a think tank warned the Bank of England may have to raise borrowing costs to 5 per cent. Traders ramped up bets on more tightening after officials signalled growing unease over inflation, stoked by hot US inflation data. The messages came from the Bank of England Watchers Conference in London on 10 November and a Bloomberg TV interview the same day, reported by [Bloomberg News](https://businessmirror.com.ph/2026/11/11/officials-from-major-cbs-signal-more-rate-hikes/) on 11 November. December is now the next decision point for all three central banks. ## Bank of England: Lombardelli keeps December open Bank of England Deputy Governor Clare Lombardelli said interest rates are likely to go up again, warning that Britain's "low-hire, low-fire" labour market may make it harder to ease wage pressures. She refused to rule out a back-to-back move in December after the Bank raised rates for the first time in more than three years last week. "In the absence of evidence of weaker inflation pressures, I continue to think there is likely to be a case for a further increase in rates in the near term," she said. The Monetary Policy Committee voted 8-1 on 5 November to raise Bank Rate to 4 per cent from 3.75 per cent. Lombardelli said the economy had proved more resilient than expected, so policy had been less restrictive than thought. Investors now price a 70 per cent chance of a rise to 4.25 per cent on 17 December. ## Federal Reserve: Waller puts 50 basis points on the table Federal Reserve Governor Christopher Waller, at the same conference, warned that a half percentage-point rise next month may be needed. He said a 50 basis-point December hike "should be considered" if October core CPI came in around 0.3 per cent or higher, because a smaller move could put the Fed's credibility at risk, according to [FXStreet](https://www.fxstreet.com/analysis/hawks-fly-in-as-feds-waller-puts-50bps-hike-on-table-and-ecbs-lane-backs-hike-202611101041). Waller said policy had not been "as tight as I thought we might have been 18 months ago" and added: "We probably definitely need to raise rates to put any downward pressure on inflation." He warned diesel costs were unlikely to see the same relief while concern over Middle East supplies persists. ## ECB: Lane calls a December rise prudent In an interview with Bloomberg TV in London, European Central Bank Chief Economist Philip Lane said it would be "prudent" to increase eurozone borrowing costs if the data does not shift before December. He said eurozone inflation was likely to reach just over 4 per cent by the end of the year, about double the ECB's 2 per cent target. Headline inflation was 4 per cent in October, with core inflation at 2.5 per cent. The ECB held its deposit rate at 2.50 per cent on 29 October, after raising it by 25 basis points in June and again in September. President Christine Lagarde has said it would take significant changes to alter the direction she expects in December. ## What the US inflation figures showed The warnings landed just before the October US inflation figures, which came in hotter than expected. The US consumer prices index grew 0.4 per cent in October, more than the 0.3 per cent expected, although down from 0.6 per cent in September. Core prices rose 0.3 per cent for a third consecutive month, matching the threshold Waller had set for a half-point move. That print shifted the debate in Washington from whether the Fed should raise rates in December to how large the rise should be. ## Think tank urges the Bank to go to 5 per cent The National Institute of Economic and Social Research said a second Bank of England rise would still leave inflation above the 2 per cent target until the end of 2030, well beyond the Monetary Policy Committee's two-to-three year window. It called on the Bank to raise rates to 5 per cent next year to bring inflation under control 18 months sooner. Most pay negotiations next year will take place as inflation climbs above 4 per cent, the institute said, raising the risk of the energy shock spilling over as workers protect their purchasing power. The UK energy price cap, which resets quarterly, means households could see bills jump by a quarter in January. ## What to watch in December The calendar now concentrates the decisions into a ten-day window. The Federal Reserve meets on 8-9 December, the ECB on 16-17 December, the Bank of England on 17 December and the Bank of Japan on 17-18 December, with rises possible at all four. For UK borrowers, the Bank of England's 17 December decision matters most, and the path of energy prices and pay will decide whether Lombardelli's warning turns into a second consecutive rise.