Banking sector turmoil puts pressure on Bank of England over interest rates

Some economists think the Bank will opt to raise rates for the final time on Thursday amid concerns over global financial stability.

The Bank of England will be under scrutiny on Thursday when it decides whether or not to push interest rates even higher (John Walton/PA) (PA Wire)

The Bank of England will be under close scrutiny on Thursday when it decides whether or not to push interest rates even higher, after the stability of the global banking sector has been thrown into question.

Economists are on the fence about whether Britain’s central bank will opt for a final rate rise to keep a lid on inflation or prefer to keep interest rates unchanged.

It follows a turbulent week for the banking industry after two major banks in the US collapsed and Credit Suisse said it was receiving emergency funding from the Swiss central bank.