The Bank of England’s next interest rate decision falls on Wednesday 30 July — a ‘Super Thursday’ with a full updated Monetary Policy Report and press conference. Bank of England Chief Economist Huw Pill has warned this week that rates may need to rise again if inflation proves more persistent than expected.
UK inflation stands at 2.8% — above the Bank’s 2% target. Pill believes the economy may still be operating beyond its productive capacity. At the June meeting, he was one of two MPC members who voted for an immediate rise to 4%. Markets now expect the rate to peak at around 4.25% before any cuts. The 30 July decision is likely to be another live event.
Clients with variable-rate loans, business overdrafts or tracker mortgages should be reviewing their position now, ahead of what could be a further rise in two weeks.