BoE expected to raise interest rates as inflation rises - reports

0.15 percentage points

The Bank of England (BoE) could announce an interest rate hike on Thursday (4 November) marking a departure from the almost two-year all-time low for the official rate of 0.1% since the start of the coronavirus pandemic in March last year, according to a report in the Financial Times.

According to the report, traders estimate the central bank will tighten its monetary policy by at least 0.15 percentage points, though it also highlights that some economists and investment experts are more sceptical. The move would follow months of global debate around increasing inflationary pressure and the knock-on effects of inflation on the economy and financial markets. New BoE forecasts are expected to see inflation surpass 5% next year and exceed the bank's 2% target for longer than previously anticipated. Uncertainty still remains, however, as to whether the Monetary Poli...