The Resolution Foundation said the Bank of England’s inflation forecast is likely to be revised upwards tomorrow in light of new wholesale gas price forecasts. As a result, expect the Bank to announce the biggest rate hike in 27 years. Andrew Bailey, the Bank’s governor, has made it clear that while a 0.5 percentage point hike is “not locked in”, it will be an option when the monetary policy committee decides on rates tomorrow. If the central benchmark rate rises to 1.75%, it will be the sharpest increase in borrowing
