The Bank of England is evaluating its largest rate hike in 33 years

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With prices rising five times faster than the UK central bank’s 2% target and the pound falling almost every day, the bank is considering the need to raise interest rates.

Prime Minister Liz Tras the plan to protect households from rising energy bills will provide a boost to the economy, easing the recession analysts expected. But the US central bank is likely to raise its key rate, potentially further weakening the pound.

“The argument for a 75 basis point move is more compelling than that for a 50 basis point increase,” wrote Paul Hollingsworth, European chief economist at BNP Paribas, in a note to clients.

Inflation is expected to continue to rise, with businesses struggling to find workers while they are resident in the UKand other parts of the world are facing a rapid rise in the cost of living.

This is likely to have an overall negative impact on UK equity markets and investor confidence.

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