- UK inflation headed for more than double BoE’s target
- Analysts divided on whether small hike coming on Thursday
- Rate rise would be first by big cenbank since pandemic
LONDON, Nov 1 (Reuters) – The Bank of England heads into its most unpredictable interest rate decision in years this week, leaving investors and analysts on edge about the chance of its first hike since the pandemic struck the world economy.
Inflation in Britain looks set to rise to 5% – more than double the BoE’s 2% target – despite a slowdown in the economy’s recovery from last year’s slump, and BoE Governor Andrew Bailey has talked of the need to act to contain inflation expectations.
Two of the other nine Monetary Policy Committee members have voiced similar concerns ahead of Thursday’s 1200 GMT announcement.
But a further two say there is little they can do to fix the root…