The Monetary Policy Committee (MPC) is expected to raise the policy interest rate for the first time in two years by 0.25% on Wednesday to 0.75%, as inflation soared above 7% in the last two months, bringing an end to a low-interest era, analysts say.
The increase is in line with the projection that the US Federal Reserve (Fed) would lift rates by 0.75% at its next meeting in September as it struggles to tame inflation amid a job market recovery.
Wilasinee Boonmasungsong, research director of Globlex Securities, projects the interest rate to be raised from 0.50% as the MPC aims to bring down inflation.
