Bank of England poised to raise borrowing costs to combat inflation

Financial markets expect 0.5 percentage point increase as fears mount that UK is about to enter long recession

• Fed eases pace of interest rate rises after signs inflation may be slowing

The Bank of England is poised to increase the cost of borrowing for households and businesses when its policymakers meet today, as fears mount that the UK economy is about to enter a long recession.

Financial markets expect a 0.5 percentage point increase in the central bank's base rate to 3.5% as the monetary policy committee seeks to combat inflation.