The Bank of England’s MPC will begin its latest meeting today, culminating possibly its largest hike in interest rates in more than thirty years.

Speculation is growing that rates will increase by seventy-five basis points to try to lower inflation. This will bring short-term rates to 3%, with another hike likely in December.

There has been severe criticism of the Bank’s policy of gradual rate increases that have taken place at every meeting since last December.

The Central Bank has been increasing rates gradually to not slow growth to such an extent that it drives the economy into recession.

The Bank’s Governor has already acknowledged that the country is heading for a period of contraction growth in any event, so it is curious that they are only planning to increase the size of hikes now.