Economics
U.K. Economists Join Markets in Forecasting December Rate Hike
- Survey shows analysts predicting increase to 0.25% next month
- Labor market data is likely to prove deciding factor
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U.K. economists have become more hawkish over the past month and now expect the Bank of England to increase interest rates in December as concerns about inflation intensify.
A month ago, economists predicted the central bank would maintain its benchmark rate at a record-low 0.1% until May. Now they expect an increase to 0.25% next month, according to a Bloomberg survey published Monday. That would make the U.K. the first major economy to lift borrowing costs since the pandemic.