The Bank of England is expected to hike interest rates for the sixth consecutive meeting on Thursday as the central bank continues to grapple with soaring inflation. The UK central bank is seen hiking the Bank Rate by 50 basis points, the largest increase since 1995. A 50bp hike would take the UK borrowing rate to 1.75%, the highest level in over 14 years. The Bank of England has said that they expect UK inflation to hit double-figures at the end of Q3/start of Q4. A recent report by the National Institute of Economic and Social Research (NIESR) forecast that UK inflation would hit 11% and that the UK central bank would have to lift the Bank Rate to 3% to bring price pressures under control.
