Markets think the Bank of England will unveil the biggest hike in interest rates for over three decades when its decision makers meet on Thursday. The Monetary Policy Committee (MPC) is expected to increase rates by 0.75 percentage points to 2.5%.
It would be the highest interest rate that the UK has had since the financial crisis. In December 2008, the base rate was slashed from 3% to 2%. It would also be the highest single increase to interest rates since 1989.
“Investors think the most likely outcome is that the MPC will increase the Bank rate by 75bp (0.75 percentage points) on Thursday,” said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
