Following the surprise 50 basis point hike in Bank Rate in June, the BoE MPC is generally expected to revert to a smaller 25 basis point increase this week. However, there is a significant minority of market participants anticipating another 50 basis point move. Crucially, headline and core inflation have decelerated, although current levels of both remain nowhere near the 2 percent target. If the consensus call is correct, what would be a remarkable fourteenth successive tightening would put the benchmark rate at 5.25 percent, matching its highest level since December 2007, and boost the cumulative tightening so far ... (full story)