Bank of England Faces Pressure to Raise Interest Rates Amid Fixed-Rate Mortgage Expirations

Nearly two million fixed-rate mortgage deals are set to expire by the end of the year, and the Bank of England is facing pressure to raise interest rates to combat inflation.

Bank of England chief economist Huw Pill has called for an immediate increase in the base rate, arguing that waiting could allow inflation pressures to become entrenched. He suggested a 25-basis point rise to 4%, which would send a clear signal about the Monetary Policy Committee's resolve on inflation.

Pill was one of only three members to vote for a rise in July, when the majority held the rate at 3.75%. Governor Andrew Bailey has taken a more cautious tone, saying the Bank's position remains reasonable given the unpredictability of the conflict.