Economists predict rate hike in August

A number of economists predict the Monetary Policy Committee will raise interest rates in August this year, to curb rising inflation.

In a poll conducted by the BBC, 14 out of 22 economists said they expect the MPC to boost interest rates from historic lows of 0.5% in August, when an inflation report is due out. Four of the economists predicted there would be a rate hike next month, while June, July, November and February also received votes. Increasing interest rates will help to combat inflation, which is also forecast to rise over the coming months despite CPI falling 0.4% in March to 4%. Of the 22 economists, 12 predicted a 1% hike, six predicted 1.25%, one said 1.3% and two forecast a 0.75% rise. Only one ec...