Bank of England to hike interest rates for 12th time in a row and forecast falling inflation
- On May 10, 2023
- By GrowthInvest Marketing
The Bank of England is poised to intensify the strain on households and businesses’ finances by hiking interest rates for the 12th time in a row this Thursday in a bid to bring down inflation, City analysts are betting.
Threadneedle Street’s nine-member Monetary Policy Committee (MPC), the group tasked with setting official borrowing costs in the UK, is anticipated to kick rates 25 basis points higher to 4.5 per cent, their highest level since October 2008.
Bank Governor Andrew Bailey and the rest of the MPC are likely to be lured into the decision by inflation remaining stubbornly high and the economy consistently defying the Bank’s downbeat projections.
Fresh figures out on Friday are expected to show gross domestic product – a measure of all goods and services made in the UK – grew 0.1 per cent in the first three months of this year, above the Bank’s forecasts, putting the country on track to dodge a recession in the first half of this year.
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