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Bank of England interest rate hike is expected as inflation climbs
The Bank of England is widely anticipated to raise interest rates again to cool the economy as inflation forecasts rise. Households and businesses are expected to bear the brunt of the increased borrowing costs.
Growing pressure is building behind the Bank of England to increase borrowing costs further, with forecasts showing inflation potentially reaching 5% next spring. Analysts predict policymakers could announce the move during their meeting on December 17 to calm economic growth and prevent inflation from surging. Chief economist Huw Pill indicated that multiple rate increases are nearly certain. If rates edge up from 4% to 4.25%, mortgage deals and business loans will become more expensive, leading companies to pass higher costs onto consumers and state entities alike.
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