Oliver Mangan: UK rate hikes anticipated as inflation climbs

It suffered the deepest recession of the major economies as a result of the Covid-19 pandemic

Markets expect the Bank of England to raise interest rates over the next 12 months in the UK,  the only major economy likely to do so.

Inflationary pressures continue to mount across the globe as evidenced by spiraling energy costs, as well as growing supply bottlenecks and labour shortages.

Economies are struggling to cope with meeting the surge in demand that has followed the lifting of Covid-19 restrictions. Markets have become more volatile as they start to price in monetary tightening by central banks to contain the threat to price stability.