Is this the end of UK interest rate rises or are there more to come?

The Bank of England's move risks squeezing the economy just as inflation is expected to start falling

Tasked with striking a balance between an unexpected increase in February's inflation numbers and concerns about a new banking crisis, the Bank of England has voted for an 11th consecutive rate rise. The question now is whether they will opt for a 12th.

Markets are pricing in a further small hike to 4.5%. However, a glance at the forecasts for inflation show it declining rapidly this year, mostly in response to a dramatic fall in energy costs. While wholesale gas prices are expected to be double the pre-pandemic level next year, they will have fallen back from the five-fold increase in 2022.

This article was amended on 23 March 2023. A previous version incorrectly referred to the Bank of England cutting interest rates.