Bank of England expected to raise rates to 4 percent

The Bank of England is widely expected to raise interest rates to 4 percent from 3.75 percent at its Monetary Policy Committee meeting on Thursday, marking the first increase in borrowing costs since August 2023.

Economists say the move is a response to rising inflation, which reached 3.5 percent in September, driven by higher petrol and diesel prices linked to the Middle East conflict. The energy price cap for households also rose by 3.6 percent in October and is forecast to jump by a further 22 percent in January.

The rate hike is expected to squeeze mortgage holders, while the Bank will also consider other economic indicators, including an unemployment rate that fell to 4.7 percent in the three months to August and an unexpected 0.1 percent growth in the economy in August.

Read the full story at London Evening Standard.