The Bank of England is expected to hike interest rates to 5.25% from 5% on Thursday, as inflation remains the highest among major nations.

The BoE has raised rates by a quarter of a percentage point last week, and markets believe they are nearing the conclusion of their rate-tightening cycles.

The Bank of England’s rate bets have fluctuated, with investors predicting a two-in-three possibility of the BoE hiking the Bank Rate to 5.25%.

The BoE raised rates in December 2021 and is expected to raise rates for the 14th consecutive time.

British employment is mixed, with a 7.3% wage increase in May, but unemployment has increased to a 16-month high.

Critics argue that higher rates are a poor weapon to combat food and energy price rise.

The International Monetary Fund predicted Britain’s economy will grow 0.4% this year, second weakest in the Group of Seven advanced nations after Germany.

The BoE’s two-year inflation projection deviates from its 2% target, indicating how much it agrees with market rate bets.