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The Bank of England is expected to raise the interest rate for the 10th time in a row later today, but analysts predict it is nearing the peak.

The benchmark rate is widely expected to go up from 3.5% to 4%, after the Monetary Policy Committee meeting.

The rate is already at its highest level for 14 years.

The impact of a rate rise would be felt by borrowers - through higher mortgage and loan costs - and in better returns for savers across the UK.

Analysts believe the rate will peak at 4.5% in the summer.

Meanwhile, the US central bank yesterday raised the interest rate again as it continues its fight to stabilise prices in the world's largest economy.

Smallest increase

The Federal Reserve said it was raising its key rate by 0.25%. That marks the smallest increase since last March, after a series of aggressive rate hikes last year.

But officials warned that they did not think they were finished raising the rate, despite signs that price increases in the US are slowing.

The bank's moves are closely watched around the world as the US drives a global shift after years of low interest rates that followed the financial crisis.

The BBC says the rate rise announced by the Fed on Wednesday was expected. It increases the bank's benchmark rate to a range of 4.5%-4.75% - the highest since 2007.

By pushing up borrowing costs, the Fed is trying to cool the economy and ease the pressures pushing up prices.

But officials risk triggering a painful recession, in which the economy slows so sharply that it prompts mass job cuts.

Pressure mounting

Pressure has mounted on the bank to slow, or stop, its rate-hike campaign, as the higher borrowing costs hurt sectors such as housing and the US economy slows sharply.

Those voices have grown louder amid recent data showing inflation in the US dropping to 6.5% last month.

Many investors have been betting that the bank will raise the rate only once more after this meeting.

But Federal Reserve chairman Jerome Powell said bank officials remained worried by data suggesting that the costs of many services - such as healthcare - are increasing far faster than the 2% pace considered healthy.

He said the bank would rather raise rates too high than declare victory over the problem prematurely.

FTSE 100

The UK's top share index, the FTSE 100, was up 18 points at 7,779 shortly after opening this morning, following yesterday's 10-point loss.

Brent crude futures were ahead 0.33% at $83.11 a barrel.

Companies reporting today

  • Q4 results: Alphabet, Amazon, Shell
  • Q1 results: Apple
  • Trading update: BT Group

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