Business · Economy · 4 hrs ago
Bank of England signals further rate rises as UK inflation is forecast to climb
The Bank of England is expected to raise interest rates again as it tries to contain rising inflation in the UK.
The central bank forecasts inflation could reach 5% next spring, more than twice its 2% target.
Its chief economist, Huw Pill, said more than one increase was almost certain, and analysts expect a possible rise as soon as next month.
Rates are currently 4%, and a move to 4.25% would make mortgages and business loans more expensive.
Households and businesses could face higher costs, while companies may pass some of their own rising expenses on to customers.
Government bodies, including the NHS and local authorities, buy a large share of goods and services, so higher prices could also raise public costs.
The Bank’s rate-setting policymakers meet on 17 December to decide what to do next.
Bank of England Chief Economist Huw Pill said more than one interest rate rise was almost certain, according to the Guardian’s account of an interview with the Financial Times.
The Guardian reported that the Bank’s latest forecasts show inflation rising to 5% next spring.
A rate increase could come as soon as the Bank’s 17 December meeting, the Guardian said.
The Bank’s current interest rate is 4%, and a rise to 4.25% would make mortgage deals and business loans more expensive.
Bloomberg reported that UK data due in the coming days may show inflation at a one-year high and a stabilizing jobs market.
- Who
- Huw Pill, the Bank of England’s chief economist, said more than one rate rise was almost certain.
- What
- Further Bank of England interest rate rises are expected to combat inflation.
- When
- Pill made the remarks on Saturday, 14 November 2026; a rate rise may come as soon as 17 December.
- Where
- The United Kingdom.
- Why
- To combat inflation; the Bank’s forecasts indicate inflation could rise to 5% next spring.
This story does not have two clearly opposing sides.
The Guardian reported Pill’s view that more than one rate rise was almost certain.
The Bank’s policymakers are due to meet, and a rate increase may come at that meeting.
- Current interest rate
- 4%
- Possible next rate
- 4.25%
- Inflation forecast
- 5% next spring
- Bank meeting
- 17 December
5 sources
BOE’s Case to Raise Rates Again May Strengthen on UK Price Data
A rapid interest rate rise seems inevitable – and households are expected to pick up the tab
بنك إنجلترا يتجه إلى مزيد من رفع الفائدة في 2027 لمواجهة التضخم
BoE chief economist says further rate rises needed to combat inflation
What people are saying
more than one rate rise was almost certain