Bank of England expected to raise rates for first time in three years
The central bank is widely anticipated to increase interest rates today, citing higher energy prices and stronger economic data.
At a glance
- First rate increase in three years expected at midday GMT
- Higher energy prices cited as primary driver of decision
- Strong growth and stabilised labour market support the move
- One dissenting vote anticipated among rate-setters
The Bank of England is expected to raise interest rates at midday, marking the first increase in three years. The decision is primarily driven by elevated energy prices, though stronger economic growth, a stabilised labour market and rising core inflation have also supported the move.
Analysts anticipate an 8-1 vote in favour, with one dissenting member. The economy is not considered overheated, and the pass-through from energy prices into core inflation has remained modest. Officials expect the rate rise to have only a modest restraining effect on economic activity.
Why it matters
Interest rate decisions by major central banks influence borrowing costs and economic activity globally, affecting businesses and consumers worldwide.
Original reporting
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