Beginning of end for Bank of England’s aggressive inflation fighting moves?

Borrowers set for another painful interest rate hike – but it could mark beginning of end for Bank of England’s aggressive inflation fighting moves

By John-Paul Ford Rojas, Financial Mail On Sunday

Published: 21:51 GMT, 28 January 2023 | Updated: 21:51 GMT, 28 January 2023

Borrowers will be hit by another painful interest rate hike this week – but it could mark the beginning of the end for the Bank of England’s aggressive inflation fighting moves.

The Bank is widely expected to increase its benchmark interest rate by half a percentage point to 4 per cent.

Such an increase would add £77 a month to a typical standard variable rate mortgage repayment, according to Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.

Rise: The Bank is widely expected to increase its benchmark interest rate by half a percentage point to 4 per cent

There are signs that inflation, currently more than 10 per cent, is starting to ease.

Markets are expecting further rises to come in increments of 0.25 percentage points.

Interest rates are predicted to peak at 4.5 per cent over the summer.

Deutsche Bank’s chief UK economist, Sanjay Raja, said the Bank’s updated forecasts were likely to show a ‘dramatically improved economic outlook’ as they should take into account easing energy prices.

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