Could the UK see two rate hikes this year?

Strong economic growth forecasted

Laura Dew
clock • 1 min read

The Bank of England could raise rates faster than expected with up to two hikes this year on the back of a stronger economy.

Economists believe the Bank could take a hawkish stance on monetary policy at its meeting of the Monetary Policy Committee this Thursday, The Times reports. This could lead to a rate rise in May followed by a second in November, they said. Currently, the market is only pricing in one rate rise in the UK this year following the first rate hike in a decade last year, when rates were increased from 0.25% to 0.5%. Inflation peaks as sterling hits post-Brexit high The change in interest rate expectations is being driven by the UK reporting growth of 0.5% during the fourth quarter of ...

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