Bank of England set for 'biggest hike in interest rates in 27 years' as economists warn inflation could hit 15% this year
It comes after the National Institute of Economic and Social Research predicted the UK would slide into a recession this week.
The UK is "something of a laggard" behind other countries in boosting interest rates, according to another analyst. Three members of the committee voted to speed up rate hikes at the last meeting in June, although the Bank ended up raising rates to 1.25% from 1%. Luke Bartholomew, a senior economist at asset manager Abrdn, said: "After a number of central banks across the world have picked up the pace of their tightening cycle, the Bank of England is starting to look like something of a laggard when it comes to raising rates."We expect this impression to be somewhat corrected next week with the Bank hiking interest rates by half a per cent."But the hike should not be taken for granted, other economists have warned.
Samuel Tombs and Gabriella Dickens, economists at Pantheon Macroeconomics, said: "The MPC's interest rate decision next week is a very close call, but on balance we think the committee will stick to its slow and steady approach. "The MPC began its tightening cycle earlier than the US Fed and the ECB , leaving it with less need to rush now.
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