The Bank of England is likely to hold rates unchanged at their highest levels since before the financial crisis this week, signalling the battle against stubborn inflation is far from over despite evidence of weakening growth.
The bank’s Monetary Policy Committee will opt to keep the benchmark rate at 5.25 per cent, according to pricing in financial markets. Four-fifths of economists polled by Reuters believe rates will remain steady on Thursday, with the rest predicting an increase as the BoE weighs signs of cooling activity against continued evidence of rapid rises in both consumer prices and wages.
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