London Daily

Focus on the big picture.
Sunday, Jul 19, 2026

Monetary Policy Committee Expected to Raise Interest Rates Amidst Increasing Inflation

Monetary Policy Committee Expected to Raise Interest Rates Amidst Increasing Inflation

The Bank of England's Monetary Policy Committee (MPC) is expected to raise interest rates by 25 basis points to 4.75% at their next meeting on June 22, following a rise to 4.50% in March, due to inflation falling to 8.7% in April, which is still above the MPC's 2% target.
However, inflation rose in the core categories, from 6.2% in March to 6.8% in April, which suggests that the MPC has little option but to continue its tightening cycle.

Economists warn that there is a high probability of another hike in early August.

The cost of living is becoming increasingly difficult for low-income families, with food inflation rising at an eye-watering rate of 19.1% in April, down only slightly from 19.2% in March.

The IMF has warned that interest rates in Britain will likely have to rise further and remain high for longer to get a firm grip on inflation.

The Chancellor of the Exchequer, Jeremy Hunt, welcomed the "big upgrade" to the UK's growth forecast, which he said "credits our action to restore stability and tame inflation." However, the economic pain faced by millions of families was laid bare by food inflation remaining eye-wateringly high.

The UK saw a significant increase in grocery spending during the week of the coronation, with sales of wine and quiche soaring.

However, the country's overall food price inflation was the second highest among the G7 group of wealthy nations.

The Chancellor met with food manufacturers to discuss ways to support consumers amid rising food prices, while the Government's borrowing soared to a near-record level due to higher debt interest and energy support schemes.

Central government receipts decreased while spending increased, with a rise in social benefits and cost-of-living financial support.

The private sector's growth slowed in May, falling short of expectations according to a flash UK purchasing managers' index.
Newsletter

Related Articles

0:00
0:00
Close
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
Key Trends to Watch
Financial Conduct Authority Warns Cloud and Digital Risks Are Becoming a Financial Priority
Jeffrey Donaldson Appeals Sexual Abuse Conviction as Democratic Unionist Party Opens Review
Welsh Health Authorities Launch Emergency Meningitis Vaccination Programme for Students
Scottish Business Activity Falls for Third Month as Companies Face Rising Costs
Bank of England Regulators Demand Better Access to Digital Banking Services
United Kingdom Cuts Bilateral Aid to Several African Countries by Up to Ninety Per Cent
United Kingdom Introduces Tougher Deportation Rules After Rochdale Exploitation Scandal
NHS England Launches Wearable Technology Plan to Reduce Sepsis Deaths
Amazon Web Services Billing Error Sends Trillion-Dollar Invoices to British Companies
Bank of England Takes Direct Regulatory Role Over Major Global Cloud Providers
Extreme Summer Heat Drives Record Fire Risk and Rising Deaths Across Britain
United Kingdom Nationalisation of British Steel Sparks Diplomatic Dispute With China
United Kingdom Economy Shows Weak Growth Ahead of Major Autumn Budget
Andy Burnham Set to Become United Kingdom Prime Minister After Labour Leadership Victory
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
Energy Risk, Uneven Growth and the New Geography of Global Capital
The AI Race Enters Its Infrastructure Era
Security and resilience remain long-term national priorities
Britain balances growth ambitions with public finance pressures
Regional devolution becomes a defining theme of the next Labour era
Industrial strategy returns to the centre of British economic policy
Political Instability Remains a Challenge for UK Investment Confidence
Brexit Economic Debate Continues as Public Concerns Over Long-Term Impact Remain
UK Climate Risks Rise as Met Office Warns Extreme Weather Is Becoming More Common
Housing Shortages and Regional Inequality Become Key Priorities Under Incoming Labour Leadership
National Health Service Reform Remains One of Britain’s Biggest Political Challenges
Bank of England Remains at Centre of UK Economic Debate Over Inflation and Growth
UK Economy Shows Recovery Signs but Households and Businesses Remain Under Pressure
Britain Deepens European Defence Cooperation as NATO Allies Seek Stronger Security Capabilities
United Kingdom Expands Sanctions Against Russian Cyber Networks Over Security Threats
UK Industrial Strategy Faces Test After Government Takes Control of British Steel
British Businesses Seek Policy Clarity as Andy Burnham Prepares to Lead Labour Government
Andy Burnham’s Labour Leadership Signals Major Shift Toward Regional Power and Devolution
British Steel Nationalisation Creates New UK-China Tensions Over Control of Strategic Industry
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
England's World Cup Exit Expected to Cost Hospitality and Retail £334 Million
Former ICC Prosecutor Aide Speaks Publicly About Allegations Against Karim Khan
Opposition Raises Questions Over June Heatwave Power Grid Pressures
Mastercard Explores Sale of Majority Stake in UK Payments Operator Vocalink
Boeing Forecasts Global Commercial Aircraft Fleet Will Double by 2045
London GP Surgeries Receive £18 Million to Expand Primary Care Capacity
Health Advisers Recommend Nationwide Meningitis B Vaccination for Teenagers
OECD Warns UK Economy Faces Slower Growth and Weak Productivity
Treasury Places Major Global Cloud Providers Under Direct Financial Oversight
Financial Markets Rally as Shabana Mahmood Emerges as Leading Treasury Candidate
×