Report: UK Braces for Biggest Hike in Interest Rates

Business

According to report, the Bank of England (BOE) is expected to step up its fight against inflation in the coming week, by joining around 70 other institutions across the world in deliver and increase borrowing costs by half-point..

The move, which is anticipated by most investors and analysts, will mark biggest increase in the interest rates in the United Kingdom in 27 years, and will accelerate the pivot away from the era of cheap and easy money.

The Bank of England was the first bank among major-economy central banks to raise rates after the COVID-19 pandemic, but is also struggling to keep up with the Federal Reserve of the United States, which has delivered a hike of 75 basis point.

This move from the Bank of England will add to the pressure on the contenders seeking to replace Boris Johnson as the prime minister of the United Kingdom. Liz Truss, foreign secretary of the United Kingdom, has promised tax cuts if she wins the race to lead the ruling Conservative Party in the United Kingdom.

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Rishi Sunak said that if he wins the prime minister’s race, he will cause inflation, which will force the interest rates to go higher.

Sandy

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