Could the UK see two rate hikes this year?

Strong economic growth forecasted

The Bank of England could raise rates faster than expected with up to two hikes this year on the back of a stronger economy.

Economists believe the Bank could take a hawkish stance on monetary policy at its meeting of the Monetary Policy Committee this Thursday, The Times reports. This could lead to a rate rise in May followed by a second in November, they said. Currently, the market is only pricing in one rate rise in the UK this year following the first rate hike in a decade last year, when rates were increased from 0.25% to 0.5%. Inflation peaks as sterling hits post-Brexit high The change in interest rate expectations is being driven by the UK reporting growth of 0.5% during the fourth quarter of ...