The Bank of England is expected to unveil the biggest hike in interest rates for 33 years next week as the central bank continues its efforts to tame inflation.
It is widely reported that the Monetary Policy Committee (MPC) is likely to rise interest rates by 0.75 percentage points to 3% at the meeting on Thursday November 3rd, the eighth consecutive rise in interest rates and the biggest increase since 1989.
Earlier this month the Bank of England Governor Andrew Bailey said ‘it was likely’ the interest rates rise would be bigger than the 0.5 percentage point increase from the previous month.
Analysts at Deutsche Bank have said they expect the Bank of England to opt for a 0.75 percentage point rise with a split vote.
Experts at the firm said they expect latest forecasts from the Bank of England, which will also be revealed on Thursday, to show that “the economic outlook has deteriorated further”.
They added: “Conditioned on market pricing, the UK economy will likely fall into a deeper and more prolonged recession.”
