The Bank of England is widely expected to leave interest rates unchanged on Thursday, despite inflation rising well above its 2% target. Markets are pricing in more than an 80% chance that the central bank will hold interest rates steady on Thursday, according to LSEG data, but a hike of at least 25 basis points is widely anticipated at its next meeting in November. A hold would mark a divergence from other major central banks. The U.S. Federal Reserve announced a quarter-point hike on Wednesday, its first hike since 2023. Last week, the European Central Bank announced its second rate hike this year, after raising rates in June for the first time in three years.
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