UK interest rates to reach the highest level since 2008

The Bank of England (BOE) will raise interest rates later on Thursday, marking the 12th straight increase since late 2021. Following this increase, interest rates will reach its highest level since late 2008.

The Bank of England has been raising interest rates in effort to curb inflation, which exceeds ten percent currently. The targeted percentage is two percent inflation rate.

Kallum Pickering, senior economist at Berenberg Bank believes an increase this week is inevitable. More uncertainty surrounds expectations for further hikes in the future.

In its Thursday meeting, the Bank will also publish its quarterly projections for U.K.’s economy. The IMF has anticipated in April British gross domestic product will contract by 0.3 percent in 2023.