Borrowing costs in the UK will likely rise during a central bank meeting later this week as officials seek to moderate a surge in inflation. The Bank of England’s potential move comes ahead of an upcoming period of wage negotiations, as policymakers attempt to prevent a cycle of price and pay increases from embedding in the economy.
An increase in the benchmark rate would mark the first time the lender has raised borrowing costs since 2023. The move would align the UK with other global central banks that have raised rates to curb inflation and stabilize consumer prices.