The Bank of England is expected to announce its biggest interest rate increase in three decades Thursday as it seeks to beat back stubbornly high inflation fueled by Russia’s invasion of Ukraine and the disastrous economic policies of former Prime Minister Liz Truss.
Economists expect the bank to boost its key rate by at least three-quarters of a percentage point, to 3%, after consumer price inflation returned to a 40-year high in September. Plus, wholesale natural gas prices, while down from their August peak, are likely to rise again this winter, driving up energy bills and further fueling a cost-of-living crisis.
