Inflation could hit 15 percent early next year, a leading think tank has warned, as rising gas prices deepen the cost-of-living crisis.
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 projections. As a result, expect the Bank to announce the biggest rise in interest rates in 27 years.
Andrew Bailey, the Bank’s governor, has made it clear that while a 0.5 percentage point rise in interest rates 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 percent, it will be the sharpest increase in borrowing