Bank of England likely to hike rates again as prices surge

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England is expected to raise interest rates for the second time in three months. That would put the United Kingdom far ahead of the rest of Europe and the U.S. in moving to tame surging inflation that’s squeezing consumers and businesses. Economists and investors forecast that the bank will boost its key rate to 0.5%. That may lead the central bank to start reducing bond holdings that it’s built up since the global financial crisis more than 10 years ago. The U.S. Federal Reserve says it’s likely to raise rates for the first time in over three years. The European Central Bank doesn’t plan to raise rates until 2023.