Bank of England May Slow Pace of UK Rate Hikes

The Bank of England is likely to boost interest rates again on Thursday, but a slowing in the pace of inflation may give policymakers scope to scale back the size of hikes.

Economists and investors anticipate the benchmark lending rate will rise at least a quarter-point to 5.25%, with a strong chance of a bigger half-point increase that would match the scale of action taken in June. Markets are now bracing for rates to peak around 5.75% by the end of this year, well below almost a full point below expectations just a month ago.