Bank of England to hike again over stubborn inflation

Rising interest rates is causing pain for British homeowners as mortgage rates are usually fixed for only several years – Copyright AFP/File ISABEL INFANTES

Roland JACKSON

The Bank of England is forecast Thursday to lift interest rates for the 13th time in a row — and may hike sharply to fight stubborn inflation despite worsening a cost-of-living crisis.

The British central bank’s Monetary Policy Committee (MPC) had been expected to raise its key lending rate, which stands at 4.50 percent, by another quarter-point to combat inflation that is the highest among G7 nations.

However, bombshell data out Wednesday showed UK inflation holding at 8.7 percent in May, dashing hopes of a slowdown and sparking bets on a larger half-point hike.

Either move would bring the BoE rate to the highest level since the 2008 financial crisis and further dent economic activity.

A hike would be in stark contrast to the Federal Reserve which pau