The Bank of England is expected to continue raising interest rates this week after inflation hits a 30-year high.
Due to the rise in inflation after the pandemic, the bank increased the historically low-interest rate from 0.1 percent to 0.25 percent in December. Thus, the bank made the first interest rate increase after three years. Inflation has continued to rise since the interest rate hike, reaching the peak of 30 years in December with increasing demand and supply chain problems.
According to experts, a 25 basis point increase is possible. Deutsche Bank Economist Sanjay Raja also stated that they expect a 25 basis point rate hike. Economists expect inflation to peak at 6.5 percent in the country and the Central Bank to return to the 2 percent target within two years.
France’s BNP Paribas also stated that it expects a 25 basis point increase this week.