Bank of England Hawks Demand Rate Hike Amid Rising Inflation

The Bank of England's Monetary Policy Committee (MPC) is likely to leave borrowing costs unchanged at its upcoming meeting, but some members are pushing for a rate hike.

Three MPC members - Huw Pill, Megan Greene, and Catherine Mann - broke ranks last time and voted to raise rates to 4 per cent. They are expected to do the same this week.

The Consumer Prices Index (CPI) has been rising, reaching 2.9 per cent in July, its highest reading since March. The services sector saw a slight easing of inflation from 3.6 per cent to 3.4 per cent, but the outlook is less reassuring due to upcoming energy price increases.

Ofgem's new energy price cap, which takes effect in October, will push typical dual-fuel household bills up by 4 per cent, likely sending headline inflation higher still in the coming months.