Bank of England poised to announce big interest rate rise - live updates - THE TELEGRAPH
The Bank of England is poised to announce another large interest rate rise as it grapples with surging inflation and a slump in the pound.
The central bank last month lifted interest rates by 50 basis points to 1.75pc – its biggest increase in 27 years.
The Monetary Policy Committee is expected to at least match that move today. Some economists think it could opt for a more aggressive 75 basis-point increase, which would be the largest since 1989.
It comes as Britain battles inflation of 9.9pc – close to its highest in four decades – with surging food and energy prices sparking the biggest slump in living standards in a generation.
The Bank is also under pressure to help boost the pound, which is trading at its lowest level against the dollar since 1985 and is on track for its worst year since the financial crisis in 2008.
But policymakers must also contend with the risk that rate rises will tip the UK into recession later this year.
The US Federal Reserve last night opted for a third consecutive 75 basis-point rise in interest rates, taking them to a post-financial crisis high.
Turkish lira slumps to record low ahead of central bank meeting
The Turkish lira has tumbled to a record low ahead of the central bank's meeting today, with some analysts expecting another rate cut.
Turkey's counter-intuitive policy of cutting interest rates to tackle inflation has baffled economists and sparked a collapse in its currency.
In August, the central bank cut interest rates to 13pc – a move that wrong-footed analysts.
The lira fell as much as 0.3pc to 18.38 against the dollar, its lowest on record.