Pound hits highest level since Brexit vote, with Bank of England expected to raise interest rates today – business live

The Bank of England is widely expected to raise interest rates for the first time in more than three years, as inflation has risen above its target and energy costs threaten to push up prices more broadly. A rate increase would aim to contain those pressures, though economists say the economy is not overheating and the effect on activity may be modest.

Markets have priced in a quarter-point rise, taking Bank Rate from 3.75% to 4%. The last increase was in August 2023, when the rate reached 5.25%; other major central banks have already raised rates this year. Economists cited expect an 8-1 vote, with Alan Taylor likely to oppose the move, and the Bank is due to announce its decision at noon.