Bank of England poised to raise interest rates as high inflation takes toll

City economists expect increase from 0.25% to 0.5% on Thursday amid cost of living crisis

The Bank of England is poised to raise interest rates on Thursday amid growing concern over the pressure on households from high inflation in Britain's cost of living crisis.

City economists widely expect the central bank to increase its key rate from 0.25% to 0.5% in response to inflation hitting levels not seen for almost 30 years, with financial markets suggesting a 90% chance of an increase in borrowing costs.