Bank of England Expected to Raise Rates Amid Inflation Pressure, May Push Back on Further Hikes

The Bank of England is widely anticipated to increase interest rates on Thursday, responding to persistent inflation driven by soaring energy costs. Economists polled by Reuters expect the Bank Rate to rise to 4.0% from 3.75%, marking the first hike since August 2023. However, the central bank may signal resistance to market expectations for several more aggressive rate increases next year, as the Monetary Policy Committee remains divided on the extent of future tightening.