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Bank of England Rate Seen Soaring to 3% This Year to Curb Inflation

  • Pound gain most since pandemic, traders boost rate-hike bets
  • Economists see more aggressive action needed from BOE’s Bailey
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BOE Hikes Tempered by Growth Challlenges: CIBC's Stretch
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The Bank of England will need to unleash a dramatic series of interest rate hikes that take borrowing costs to 3% by the end of the year, according to financial market bets that suggests policy makers have lost control of inflation.

The UK central bank delivered a quarter-point rate increase on Thursday -- a third the size the U.S. Federal Reserve pushed through the night before. BOE policy makers also signaled they will move “forcefully” in the future if needed.