Bank of England is set to hike rates to battle inflation. That means pain for borrowers

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England is poised to raise borrowing costs again to combat stubbornly high inflation, which has failed to come down from its peak as quickly as expected. The consensus among analysts is that the central bank will raise its main interest rate by a quarter-percentage point Thursday. That would hit a new 15-year high, but there are concerns that it may opt for a bigger half-point increase. That larger hike would be painful for people with loans, especially the 1.4 million or so households in the U.K. that will have to refinance their mortgages over the rest of the year.