Bank of England’s inflation fight setback, may raise interest rates by another 50 basis points

165

ING Bank developed markets economist James Smith said in a report that the UK’s CPI data next Wednesday will be crucial to the Bank of England’s August interest rate decision.

Wage growth hit record levels in April and May, according to the latest and revised data, marking a setback for the Bank of England’s efforts to curb high inflation. That raised the chances of a further 50 basis point hike from the BoE, although that would “much depend on whether next week’s service sector inflation is also higher than expected”.