Bank of England's 12th Interest Rate Hike Amid Uncertain Outlook

The Bank of England is expected to raise interest rates for the 12th consecutive meeting on Thursday, with a majority of economists predicting a 7-2 split vote to take the Bank Rate from 4.25% to 4.5%. However, projections beyond that begin to diverge, with the UK economy tipped to be the worst-performing major economy over the next two years and inflation considerably higher than peers. The central bank projected in February that the consumer price index (CPI) inflation rate will drop from the annual 10.1% recorded in March to just 1.5% in the fourth quarter of 2024.