Bank of England readies what may be its final rate hike

The Bank of England is likely to hike interest rates once again this week, possibly the last hurrah for one of the great tightening cycles of the last 100 years as a cooling economy begins to worry policymakers. All but one of 65 economists polled by Reuters in recent days predicted the BoE will raise Bank Rate to 5.5% on Thursday from 5.25%, which would mark its highest level since 2007. Financial markets are less certain than economists – with rate futures on Friday showing a 25% chance of a pause – but both are coming to the view that the streak of rises in borrowing costs since December 2021 is in its last days.