The Bank of England is expected to raise its main interest rate on Thursday for a second policy meeting in a row to combat decades-high inflation that risks stalling economic recovery.
Analysts’ consensus is for BoE policymakers, led by governor Andrew Bailey, to hike borrowing costs by a quarter-point to 0.5 percent at their regular meeting and revise both their inflation and growth forecasts.
The central bank already increased borrowing costs from a record-low 0.1 percent to 0.25 percent in December — the first monetary policy tightening in more than three years.
Another move this week “would mark the first time that the BoE has increased its policy rate in two successive meetings since June 2004”, noted Karl Thompson at the Centre for Economics and Business Research.
Nevertheless, the bank could surprise markets and sit tight this time round, as it did in November when a rate rise had been widely expected.