business
Bank of England expected to raise rates, possibly to 4%
Interest rates are widely expected to rise to 4% from 3.75% when the Bank of England announces its decision on Thursday, November 5. Traders have already priced in the increase, which would be the first rise in borrowing costs since August 2023. Inflation climbed to 3.5% in September, its highest level in 11 months, with a surge in petrol and diesel prices driven by the conflict in the Middle East. Ofgem's energy price cap rose 3.6% for a typical household on October 1 and is forecast to jump a further 22% in January, adding pressure on prices into winter. Economists say rate-setters want to tackle rising inflation, and markets are watching whether the Bank also pushes back on bets for further increases. Borrowers could face a squeeze as a result, although the economy unexpectedly grew 0.1% in August and unemployment fell to 4.7%.
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Bank of England expected to raise rates, possibly to 4%
Interest rates are widely expected to rise to 4% from 3.75% when the Bank of England announces its decision on Thursday, November 5. Traders have already priced in the increase, which would be the first rise in borrowing costs since August 2023. Inflation climbed to 3.5% in September, its highest level in 11 months, with a surge in petrol and diesel prices driven by the conflict in the Middle East. Ofgem's energy price cap rose 3.6% for a typical household on October 1 and is forecast to jump a further 22% in January, adding pressure on prices into winter. Economists say rate-setters want to tackle rising inflation, and markets are watching whether the Bank also pushes back on bets for further increases. Borrowers could face a squeeze as a result, although the economy unexpectedly grew 0.1% in August and unemployment fell to 4.7%.