Beginning of end for Bank of England’s aggressive inflation fighting moves?
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Borrowers gear up for another painful rate hike – but this could spell the beginning of the end for the Bank of England’s aggressive moves to fight inflation
Borrowers will be hit by another painful rate hike this week, but this could spell the beginning of the end for the Bank of England’s aggressive anti-inflation measures.
It is generally expected that the Bank will raise its benchmark interest rate by half a percentage point to 4 percent.
According to Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, such an increase would add £77 a month to a typical variable rate mortgage repayment.
Rise: The bank is widely expected to raise its benchmark interest rate by half a percentage point to 4 percent
There are signs that inflation, currently over 10 percent, is starting to ease.
Markets expect further increases in steps of 0.25 percentage point.
Interest rates are expected to peak at 4.5 percent in the summer.
Deutsche Bank chief economist Sanjay Raja said the bank’s updated forecasts were likely to show a “dramatically improved economic outlook” as they should account for falling energy prices.