Interest rates expected to rise for first time in over three years
The Bank of England is expected to raise interest rates from 3.75% to 4% to combat rising inflation, marking the first increase in over three years. Analysts suggest the move is driven by higher energy costs linked to the ongoing war in Iran.
Why it matters
An interest rate hike directly impacts the cost of borrowing for UK households and businesses, signaling a shift in monetary policy amid economic uncertainty.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 15 minutes ago Policymakers at the Bank of England are expected to raise interest rates on Thursday in what would be the first increase to the benchmark rate for more than three years.
Most analysts are predicting an rise from 3.75% to 4% in a move that would increase the cost of borrowing for individuals and businesses, but boost savers.
The Bank rate has fallen from its 2023-24 peak of 5.25%, although the Bank's Monetary Policy Committee (MPC) has left the rate unchanged at its last six meetings.
Rising inflation, driven primarily by the cost of petrol and diesel, will push policymakers into an interest rate hike, analysts suggest.
The announcement will be made by the Bank at 12:00 GMT on Thursday.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in