FKU - Bank of England expected to join the 50-basis-point rate club

The current rate hiking cycle is showing no signs of letting up as the Bank of England gets ready for its sixth increase since December. This time around, the U.K. central bank is even expected to raise borrowing costs by 50 basis points, or double its previous round of quarter point hikes. It would also be its largest increase in 27 years, lifting key interest rates from 1.25% to 1.75% - to their highest level since the start of the global financial crisis.

Commentary: "We know they're worried about sterling and in that sense they don't want to be left as the odd one out by not joining the 50-basis-point club," said ING economist James Smith.

The BoE is also due to give more details about how it plans to start selling down its massive £844B sheet of government bond holdings. Last month, Governor Andrew Bailey said the central bank could offload £50B-£100B over the course of a year following more than a decade of economic stimulus. The BoE also stopped short of forecasting a technical recession in its last Monetary Policy Report in May, but shifts in language or expectations could change in today's edition.

Go deeper: Inflation in the U.K. is now running at a 40-year high of 9.4%, triggering a cost-of-living crisis amid surging food and energy prices. The central bank's inflation-fighting record has also been questioned by Liz Truss, the front-runner to be the next U.K. prime minister. She has pledged to set "a clear direction of travel" for monetary policy, as well as a review of the BoE's mandate that lead to greater oversight by members of parliament.

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