Bank of England Expected to Hike Interest Rates to New 13-Year High

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The Bank of England is expected to hike interest rates for the fifth time in a row, but experts warn that any hesitation could push the price of petrol higher.

The Bank of England is expected to raise its base rate from 1% to 1.25%.

Since January 2009, the rate has not been higher than 1%.

The monetary policy committee will make a decision on Thursday.

Inflation has hit highs not seen in decades and they want to rein it in.

The pound is likely to be punished on the currency markets if the Bank of England does not raise the interest rate at the next meeting.

The price of petrol and diesel would go up if there was a drop in the dollar's value.

For the first time, the average price of filing a family car was over 100 dollars.

Drivers aren't likely to approve of a further jump.

The Bank might raise rates.

In the last four meetings, the committee voted for a rise.

Three out of nine members of the Monetary Policy Committee voted in favor of setting rates at 1%.

There have been changes since then. The UK economy is predicted to be the weakest in the Group of Seven next year by the Organisation for Economic Co-operation and Development.

The Bank is putting the brakes on an economy that is slowing down.

That could cause the economy to stall or even go into reverse. Mr. Khalaf spoke.

The Chancellor has given the Bank more wiggle room in order to help people deal with high energy bills.

The handout will be eaten away by an interest rate increase.

Savers will benefit from a hike if rates are kept the same.

People are expecting things to get better. 70% of people in a survey commissioned by the Bank of England think rates will go up over the next year.

28% think a rate rise will benefit the economy, 22% think the same about a drop, and 28% want them to stay the same.

The market thinks the Bank might go further than the rise to 1.25% and bring rates directly to 1.5% or a rise of 50 bps.

Allan Monks at JP Morgan said that markets continued to price a hike in the 50s.

There is a chance that this could be delivered next week.

The Monetary Policy Committee will stick to frequent steps of 25bps as it is concerned about recession as well as inflation risks and is trying to find a narrow path to tread.

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