BOE Considers Rate Hike Amid Economic Downturn

The Bank of England may raise interest rates in 2026 despite the weak economy. This move is driven by expectations, according to Andrew Bailey, the governor of the Bank of England.

Raising interest rates during a recession can seem counterintuitive, but it's all about managing inflation and setting market expectations.

The central bank meets this week to discuss interest rates for the first time since Andy Burnham became British Prime Minister. The decision will be announced on Thursday at noon.