BoE prepares for biggest rate hike since 1989

The Bank of England (BoE) Monetary Policy Committee is expected to make the biggest increase in policy rates since 1989 at its meeting today. The Bank of England (BoE) Monetary Policy Committee is expected to make the biggest increase in policy rates since 1989 at its meeting today, raising interest rates to a level not seen since 2008. Economists expect the BoE to increase interest rates by 75 basis points today and raise the policy rate to 3 percent. If the BoE raises interest rates as expected today, it will have raised interest rates in the last 8 meetings. Last year, the policy rate was 0.10 percent. The Bank of England will also release its long-term inflation forecasts along with its interest rate decision today. These forecasts are expected to show that inflation next year will be much higher than the 2 percent target. Analysts at Deutsche Bank predict that the BoE’s macroeconomic forecasts will show that the economic outlook has worsened further.