Bank Of England Pressed To Follow Us Fed With Big Rate Hike

Bank of England, Britain’s central bank is under pressure to make another big interest rate hike Thursday, with inflation outpacing other major economies but the U.S. Federal Reserve and other banks acting more aggressively to get prices under control.

The Bank of England hiked its benchmark rate last month by half a percentage point to 1.75%, the biggest increase in 27 years, and it’s expected to at least match that in its latest decision, which was delayed a week as the United Kingdom mourned Queen Elizabeth II.

Faced with a slumping currency, tight labor market and inflation near its highest in four decades, officials may feel the need to act more aggressively as rising food and energy prices fuel a cost-of-living crisis that is considered the worst in a generation.

But giving pause could be economic relief measures from new Prime Minister Liz Truss’ government that are expected to ease inflation short term.