The Guardian reports that the Bank of England is on the cusp of the biggest interest rate hike since 1995, driven by higher borrowing costs.
Since the bank sets interest rates at noon, many economists expect the bank’s policymakers to raise the benchmark interest rate by 50 basis points, raising the bank rate to 1.75% from 1.25%.
If approved, it would be the first 50 basis point increase since 1995.
Since December last year, the Bank has already raised its key interest rate from 0.1% to 1.25% in response to rising costs of living and confirms that inflation in the UK has not yet come down.
In May last year, the bank raised its base interest rate to 1%, the highest level in 13 years, the fourth consecutive increase, while continuing to counter rising inflation in the country.
Source: The Guardian