The Bank of England is expected to raise its base interest rate to 4%. The decision is aimed at curbing rising inflation in the United Kingdom. The final decision will be made by the bank's Monetary Policy Committee.
Inflation, which continues to rise, is named as the reason for the tightening of monetary policy. Raising the rate is a standard tool of the central bank for cooling consumer demand and returning prices to the target level. The expectation of such a move is fairly widespread among economists and financial market participants.
However, the decision has not yet been confirmed. The committee's final vote and the exact result are not disclosed in the reports. It is also not reported when exactly the decision will be announced, or how significant the increase will be beyond the stated target level of 4%.
It should be taken into account that the final outcome may differ from expectations. The Bank of England's rate decisions traditionally affect the cost of loans, mortgages and savings, so any changes draw wide reaction from households and businesses. No further details on the consequences or on the reactions of individual market participants are provided in the source data.