Skip to main content

Stepping up the fight

We expect the Monetary Policy Committee (MPC) to step up its fight against high inflation at its meeting on Thursday 4th August by raising interest rates by 50 basis points (bps), from 1.25% to 1.75%, rather than repeating the recent 25bps hikes. What’s more, the MPC may imply that it is willing to raise rates by 50bps at future meetings if there are no signs that domestic price pressures are easing. That would support our view that interest rates will peak at 3.00% rather than the analyst consensus of 2.00%. We will be responding to the MPC’s announcement and answering questions from clients in a “Drop In” webinar at 3.30pm BST on Thursday 4th August. (Register here.)

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access