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  • Bank of England to send rates to four per cent after Truss energy package

Bank of England to send rates to four per cent after Truss energy package

The Bank of England could be forced to hike interest rates to their highest level since October 2008 to offset Liz Truss’s around £150bn energy support stoking inflation, City economists have warned.

by | 11 Sep, 2022

Sanjay Raja, senior economist at Deutsche Bank, said borrowing costs may be hoisted to restrictive territory to tame price pressures, possibly reaching a peak of four per cent.

Governor Andrew Bailey and the rest of the monetary policy committee (MPC) will back three more 50 basis point rate rises this year, taking the Bank’s cumulative tightening cycle since last December to 315 basis points. 

Read more at City A.M.

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