The Bank of England is poised to interest rates for the 10th time in a row, later this week, when its policymakers meet later this week.
The financial markets are expecting a 0.5 percentage point increase in the central bank’s base rate, to 4% – its highest level since the 2008 financial crisis, The Guardian has reported.
There have been nine consecutive rises from the Bank’s monetary policy committee since December 2021.
It is trying to balance driving high inflation out of the system without fuelling a deeper economic downturn.
Most economists polled by Reuters envisage one more rate rise – to 4.25% in March – while financial markets price in the tightening cycle ending in the middle of this year at 4.5%, reported the newspaper.
The Bank’s governor, Andrew Bailey, said earlier this month that there could be a rapid fall in inflation this year after a recent drop in wholesale energy prices, but that shortages of workers across the economy could still pose a major risk.
Economists expect the Bank to cut its forecast for inflation to finish the year at 3-4%, down from a previous forecast of 5%.
