UK interest rates set to rise amid high inflation

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England is widely expected to raise interest rates in order to combat rising inflation, a move that is likely to make mortgages and loans more costly. Financial markets think the bank is more likely than not to raise its main interest rate Thursday from the record low of 0.1% to 0.25% to rein in surging consumer prices stemming from high energy costs, labor shortages and other factors as the global economy recovers from the pandemic. The Bank of England would be the first central bank among the Group of Seven leading economies to do so if it did raise interest rates.