Britain Interest Rates

The Bank of England is expected to raise interest rates for the first time in over three years in order to tackle the inflation shock caused by the Iran war. Inflation is predicted to rise further over the coming months. So economists reckon the nine policymakers on the Monetary Policy Committee have little option but to increase the bank’s key rate to 4% from 3.75%. The increase anticipated Thursday would be the first since August 2023. The pressure on rate-setters has grown steadily over recent months. But the rise in inflation to an 11-month high of 3.5% in September cemented market expectations of a rate hike this month.