Interest rates expected to rise for first time in over three years

Analysts predict the Bank of England will raise interest rates from 3.75% to 4% today, marking the first increase in over three years. This decision responds to rising energy prices and hawkish macro data, including resilient growth and a stabilised labour market. While core inflation has edged higher, the economy does not appear overheated, and the pass-through from energy costs remains modest. The City of London expects this move as the BoE addresses current economic pressures.