Bank of England mulls biggest rate hike in 25 years

· by · in

International Business News – Under pressure from European and American central banks to tighten monetary policy, the UK Monetary Policy Committee will meet on Thursday to discuss raising interest rates by 50 basis points.

Following the European Central Bank and the Federal Reserve, Bank of England (BoE) policymakers will be under pressure to tighten monetary policy faster when they meet this week.

Bank of England Governor Andrew Bailey made it clear that while a 0.5 percentage point hike is “not yet certain”, a rate hike will be “discussed” when the MPC makes a policy decision on Thursday one of the options”. The Bank of England has been raising interest rates in steps of 0.25 percentage points since December, but pledged in June to take “strong” action if necessary to tackle more persistent inflationary pressures.