Rolling coverage of the latest economic and financial news, including the Bank of England’s interest rate decision at noon
- Bank of England poised to raise UK interest rates to 5.25%
- TUC urges Bank of England to halt ‘reckless’ interest rate increases
Mike Riddell, head of Macro Unconstrained at Allianz Global Investors, is also predicting a quarter-point rise today.
He says:
We expect the Bank of England (BoE) will hike by 0.25% to 5.25%, rather than 0.5% that was previously feared by markets.
UK economic growth continues to falter. Higher mortgage rates are starting to weigh on the UK housing market where prices are falling by the most since 2009.
We believe the BoE will be able to curb growth and drive down inflation. If it does so, the BoE should be in a position to cut rates next year.
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