Bank of England expected to raise interest rates for first time in three years today – business live
Rolling coverage of the latest economic and financial news Looking at the latest money market pricing, a UK interest rate rise today is seen as a 98% chance. The Bank of England will be reassured to see that the oil price has tumbled this week. Peace talks are in rhetoric alone currently. Meanwhile, it’s feared an increasingly lame-duck President Trump could become more active (and arguably…
Good morning, and welcome to our ongoing reporting on business, the financial markets, and the world economy. It's likely that the Bank of England will make a decision at noon today that will generate some surprise in the City of London. The central bank is expected to raise interest rates for the first time in over three years.
This hike could see Bank Rate rise from 3.75% to 4%. Inflation has been climbing faster than the Bank's target, prompting many policymakers to believe that it's time to tighten monetary policy. The aim is to curb the risk that high energy prices could lead to a rise in the cost of other goods and services. Since August 2023, the Bank hasn't raised borrowing costs.
Furthermore, other central banks around the globe - including the US, Japan, the eurozone, Australia, and Canada - have already increased their rates this year. Peder Beck-Friis provides insights into this potential development.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
