Bank of England set for tough call on interest rates after US rise

Analysis: UK faces strong pressure from inflation, but increase could help push economy into recession

The Federal Reserve has raised US interest rates for the first time since 2018; now all eyes are now on the Bank of England to see whether it increases UK borrowing costs for a third time in succession.

Wednesday's quarter-point increase by the world's most powerful central bank was never really in doubt. It would have come as a complete shock to Wall Street had the Fed decided to sit on its hands as a result of the war in Ukraine.