CITY AM – Bank set to hike rate yet again 

Bank of England to raise interest rates for 13th time in a row this week to tame persistent inflation

CITYAM SAYS The Bank of England is nailed on to raise interest rates for the thirteenth meeting in a row this Thursday, but markets think there’s an outside chance Governor Andrew Bailey and co will revert to an outsized rise to tame what is emerging as the worst inflation problem in the rich world.

Markets reckon the nine-strong monetary policy committee (MPC) – the group of people who set official interest rates in Britain – will kick borrowing costs up 25 basis points to 4.75 per cent, taking them to their highest level since April 2008.

However, some think there’s an outside chance the MPC will lift rates 50 basis points, something they have not done since February, in order to signal to markets they are serious about bringing inflation back to the two per cent target.

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