Experts expect interest rate increase

City analysts believe the surging jobs market may see the Bank of England (BoE) opt for further increases to interest rates next month. The Bank last month voted to increase the base rate to 0.25%, having previously opted against an increase due to fears over the strength of the jobs market.  RSM economist Thomas Pugh believes the chances that rates will be increased at February’s Monetary Policy Committee (MPC) meeting have been boosted by recent strong jobs data from the Office for National Statistics, suggesting that the MPC “is likely to conclude that the labour market is strong enough to absorb higher interest rates". Shane O'Neill, head of interest rate trading for Validus Risk Management, said the ONS data “represents another box ticked on the path to more rate hikes".

Daily Express (18/01/2022)   Evening Standard (18/01/2022)