The Bank of England is set to increase interest rates today, following an unexpected rise in inflation.
This marks the 11th increase since December 2021, with analysts predicting the base rate will go up from 4% to 4.25%.
Many economists had believed that the Bank of England would pause its run of interest rate hikes as inflation appeared on course to ease steadily.
However, data released yesterday showed that inflation had risen to 10.4% from 10.1% in February.
The rise in inflation comes after it hit a 41-year high of 11.1% in October, and the Bank of England is now under pressure to take action to bring it under control.
The US Federal Reserve has also been taking action against inflation, raising interest rates for the ninth time in a row yesterday.
Despite stress in the banking industry following the collapse of two regional banks, the Federal Reserve has opted to continue its campaign against high inflation.
“The Committee anticipates that some additional policy firming may be appropriate,” the Federal Reserve said in a statement.
The Bank of England’s decision will be released at lunchtime.
