Bank of England expected to raise interest rates for first time in three years today – business live

AI desk brief

The Bank of England is expected to raise Bank Rate by 25 basis points to 4% from 3.75% at noon, responding to above-target inflation and risks that higher energy costs spread to other prices. PIMCO economist Peder Beck-Friis says the hike is fully priced, while noting modest energy pass-through into core inflation and an economy that is not overheated. Berenberg forecasts an 8–1 vote for tightening. For gold, the decision could increase opportunity costs if it lifts expected real yields, but the anticipated nominal-rate increase alone does not establish that effect or a clear bullion direction.