BOE to raise rates in May as it grapples with high inflation

In the Asian session on Tuesday (April 25), GBP/USD rose to 1.2502, an increase of 0.14%. The Bank of England is expected to raise rates in May, and possibly again after that, as it grapples with stubbornly high inflation.

Investors are currently pricing in a 98 percent chance of a 25 basis point hike to 4.5 percent on May 11, and about a 50 percent chance of two more 25 basis point hikes by August, which would put the Bank interest rate rises to 5%.