City searching for signals as Bank of England set to hike interest rates

City traders are monitoring signals as the Bank of England prepares to tighten monetary policy this Thursday. The Monetary Policy Committee is expected to increase interest rates from 3.75 per cent to four per cent. This move marks the first rate hike in over three years, aimed at combating an inflation shock triggered by the Iran war. Policymakers are acting to stabilise the economy as markets anticipate whether the Bank of England will accelerate further hikes.