Bank of England governor Mark Carney is set to lay the groundwork this week for a an interest rate rise in May, despite signs that inflation is slowing.
The Bank is widely expected to keep the cost of borrowing on hold on Thursday, but economists will be looking for clearer hints of an increase at its next meeting.
Last month, the Bank’s monetary policy committee (MPC) said rates may need to rise “somewhat earlier and by a somewhat greater extent” than markets were expecting, due to better than forecast economic growth.
