Despite headline inflation is above the 2.0% target and the UK interest rates have been unchanged the latest few month, in today’s meeting, the Bank of England is widely expected to increase rates in 25 basic points to 5.0%. “A rate hike is now widely expected after last month’s meeting where the two new members to the committee already voted for a hike,” explained Daragh Maher, analyst at Calyon. “In more recent testimony to Parliament, Governor King noted that there was little disagreement among members of the MPC, which alongside comments on inflation expectations, housing and money supply growth, suggest this consensus is now likely in favour of a hike,” she said.