BoE Expects Largest-Single Rate Hike in 27 Years by 50bps on Thursday

The Bank of England (BoE) is widely expected to raise interest rate by 50 basis points on Thursday as part of its move to slow down inflation rate.

A 50bps hike would be BoE’s largest single increase since 1995, which would take its borrowing costs to 1.75%.

Inflation in the region has been accelerating in the past few months. U.K. inflation recently reached a fresh 40-year high of 9.4% in June amid rising food and energy prices.

Bank of England Governor Andrew Bailey earlier in July signalled for a hawkish move by hiking interest rate by 50bps while saying that there would be “no ifs or buts” in BoE’s commitment to returning inflation to its 2% target.