Why do fixed rate mortgages now have lower interest rates than variable mortgages?

Boring topic, I know, but…

Surely a bank is automatically hedged on a variable rate loan as it can borrow from the BoE at the BoE Base Rate.

But the bank is exposed to risk on a Fixed Rate mortgage if BoE rates change against them.

Or does this not matter that much because they only offer short term fixed rates so the changes are more predictable and the risk for them is limited in time?

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