Bank could increase interest rates this week
The Financial Times’ Investors’ Chronicle reports: “As far as markets are concerned, a rate hike next Thursday is a done deal."
The Bank of England may be set to raise the base interest rate on Thursday with many experts predicting a 0.25% increase.
A recent jump in inflation coupled with further price rises to come, could persuade the Bank that a rise is necessary this time.
At its last meeting in September the Bank’s Monetary Policy Committee (MPC) voted to hold the rate at 3.75%, but three of its nine members opted for an increase.
The Bank’s Chief Economist Huw Pill, who is an MPC member, has already said he supports a rise.
Inflation jump
Inflation now stands at 3.5% following a recent 0.4% jump, and war in the Middle East continues to pile pressure on energy prices.
A rate hike next Thursday is a done deal.”
The Financial Times’ Investors’ Chronicle reports: “As far as markets are concerned, a rate hike next Thursday is a done deal.
“Traders see a near-96 per cent chance that the Bank of England’s (BoE) Monetary Policy Committee (MPC) will raise rates by a quarter of a percentage point on 5 November.”
A poll of mortgage brokers by Mortgage One found most expect the Bank rate to rise to 4% this week, followed by successive increases next year to 5%.
Financial platform Bloomberg was reporting that last week’s Budget did nothing to relieve pressure on the Bank to raise rates.
