The Bank of England is expected to raise interest rates by 50 basis points on Thursday, the largest rise since 1995. A move that would bring borrowing costs to 1.75% as the central bank battles rising inflation. The consumer price index in the UK reached a new 40-year high in June, equal to 9.4%, due to the continuing surge in food and energy prices, exacerbating the historic cost of living crisis in the country.
Bank of England Governor Andrew Bailey suggested in a speech given on July 19 that the Monetary Policy Committee might consider a 50 basis point hike, swearing that there will be “no ifs and buts” in the commitment of the Bank of England. Bank to bring inflation back to its 2% target. A Reuters poll conducted last week indicated that more than 70% of market participants are now expecting a half point hike.