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.
