Britain’s interest rates are expected to rise this week to the highest level since 2008. According to economists and the financial markets, the base rate will rise for the 12th consecutive time as inflation continues to soar.
Policymakers at the Bank of England are expected to raise interests from 4.25% to 4.5% on Thursday, representing a 0.25 percentage point increase. The move will make it even more expensive to borrow, pushing banks to lift savings rates.
It comes as UK Consumer Prices Index (CPI) inflation remained firmly in double digits in March, squeezing household budgets and proving more stubborn than expected. The Bank’s aim in elevating interest rates is to bring UK inflation down to its 2% target.
