The Bank of England is expected to hold interest rates steady on Thursday despite inflation rising to 3.1% in August, its highest level since March. This decision would set it apart from other major central banks, with the U.S. Federal Reserve having announced a quarter-point hike on Wednesday and the European Central Bank having implemented its second rate increase this year. The United Kingdom has the highest borrowing costs in the G7, with yields on its 20- and 30-year gilts approaching the 6% mark. According to LSEG data, markets are pricing in more than an 80% chance of a hold this week, but a hike of at least 25 basis points is anticipated in November.
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