Central Banks
The Bank of England Is About to Temper Rate Hike Aggression
- Recession and dip in inflation gives BOE some breathing room
- Prospect of four-way split opens question on where rates peak
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The Bank of England is likely to slow the pace of interest-rate rises on Thursday as it balances risks from high inflation with concerns that overly aggressive action might unnecessarily deepen the recession ahead.
Investors and economists expect the UK central bank to deliver a half-point increase in the key rate, putting the benchmark at 3.5%, the highest since 2008. That follows an unprecedented 75-basis point hike in November, the biggest single move in 33 years.