Bank could increase interest rates this week
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.
The post Bank could increase interest rates this week appeared first on The Negotiator.
Author: Gemma
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