Central Banks
Bank of England Is Set to Raise Rates and Start Asset Sales
- Historic step away from stimulus aimed at fighting inflation
- Pound’s decline and energy prices likely to push up prices
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The Bank of England on Thursday is set to raise interest rates and start selling assets built up during a decade-long stimulus program, a historic tightening of monetary policy designed to clamp down on inflation.
Economists expect the UK central bank to lift its benchmark lending rate a half percentage point to 2.25% and confirm plans to sell more of the £895 billion of bonds acquired during the quantitative-easing program. Investors see a strong chance of a three-quarter-point increase.