Markets predict 6% UK interest rate by end of year

Rates will remain at level until summer 2024 after Bank of England hikes benchmark rate by half a percentage point

The financial markets are predicting UK interest rates will hit 6% by the end of the year, and remain at that level until next summer, after the Bank of England hiked its benchmark rate by half a percentage point.

The financial markets were volatile as economists warned that the Bank's efforts to cool inflation by lifting its key lending rate to 5% on Thursday could trigger a recession.