direct: Investors and economists are likely to push wage inflation in Britain to prompt the Bank of England to another sharp increase in interest rates this week.
They also expect the Bank of England to raise key interest rates by half a point to 4% on Thursday, which would be the highest level since 2008 and the fastest series of hikes in 3 decades, according to Bloomberg News.
More than a million public sector workers are due to stop their jobs this week in protest that their wages are not keeping pace with inflation, which rose to a 41-year high last year.
It is noteworthy that the bank has been raising the interest rate for more than a year. Last December, the interest rate had recorded 0.1%, as policymakers tried to encourage consumer spending after the Corona virus led to a slowdown in the economy, but efforts to control inflation and return it to the set goal, which is 2% led to the bank’s monetary tightening policy since then.
The consumer price index fell to 10.5% last December, compared to 10.7% last November, and 11.1% last October, which indicates the possibility that the index has passed the peak.