BoE readies for biggest rate rise since 1989

Rising costs: Morning commuters pass by the BoE building in London. Consumer price inflation returned to a 40-year high of 10.1% in September and is likely to have risen further last month. — Bloomberg

LONDON: The Bank of England (BoE) looks on track to raise interest rates by three quarters of a percentage point to 3% later yesterday, its biggest rate rise since 1989 as it battles the highest inflation in 40 years.

The BoE has faced political and financial market turmoil since its last rate rise on Sept 22, a day before former Prime Minister Liz Truss’ government launched an unfunded £45bil (US$52bil or RM247bil) package of tax cuts.