Bank is tipped to raise interest rate

In what would mark another milestone for the economy in its recovery since the financial crisis, members of nine-strong Monetary Policy Committee are expected to increase rates from 0.5 per cent to 0.75 per cent on Thursday.

The move would see rates hit their highest level since March 2009, when they were slashed from 1 per cent to 0.5 per cent as the financial meltdown and recession wrought havoc.

Investec economist George Brown said he was “fairly confident” the Bank will move to raise rates and is pencilling in an 8-1 vote in favour, with Sir Jon Cunliffe the only dissenter.

The bank also edged a step closer to a rise in June when its chief economist Andy Haldane joined two fellow policymakers in calling for a rise.