The Bank of England is expected to raise interest rates twice this year after a surprisingly strong showing from the economy at the end of last year and a brightening outlook in 2018, leading economists say.
Although the Bank’s rate-setting monetary policy committee seems almost certain to keep its rate at 0.5% when it meets on Thursday, it is widely expected to display a hawkish shift in outlook by leaving the door open to a rise in May. Many economists expect a further rise in November.
The shift comes with the economy appearing to be on a modestly firmer footing for the first time since the vote to leave the European Union in June 2016. After the economy grew by 0.5% in the last three months of 2017, up from 0.4% in the third quarter and better than expected, the Bank is expected to upgrade its growth forecasts this week.
