the bank of england was set to again hike its interest rate on thursday to fight soaring inflation even if it worsens a costofliving crisis that the uk government is seeking to contain the boes meeting follows a busy week for central banks as its peers in the united states and elsewhere in europe further tightened their own monetary policies in global efforts to tame runaway inflation the british central banks decision taking place at 1100 gmt had been postponed from last week following the death of queen elizabeth ii most economists forecast policymakers to lift the boes key rate by 05 percentage points to 225 percent repeating its august increase that had been the biggest rise since 1995 some commentators even predict the boe could mirror the european central bank and the us federal reserve and spring a jumbo hike of 075 percentage points  which would be the boes largest in three decades across the world consumer prices have galloped to their highest levels in decades on rampant energy and food prices in the wake of russias war on ukraine central banks have responded by rising rates which has fanned recession fears because they push up loan repayments for consumers and companies alike thereby exacerbating the uks costofliving crisis the fed on wednesday unveiled a 075percentagepoint increase its third straight jumbo hike one day after swedens riksbank shocked markets with a jump of a full percentage point on thursday the swiss national bank unleashed a 075percentagepoint hike that lifted its policy rate out of negative territory for the first time since 2015 meaning depositors no longer have to pay to park their money at the bank on thursday the norwegian central bank raised its rate by 05 percentage points taking it to its highest level in more than a decade bucking the trend the bank of japan kep its ultraloose monetary policy unchanged sending the yen to a fresh 24year low against the dollar the boe earlier this month defended itself against accusations of being too slow to tackle skyhigh inflation after truss proposed to review its operational independence uk inflation eased to 99 percent in august but remains near a 40year high and the boe has forecast that the country will fall into recession later this year we think the bank of england decision is a finely balanced one but find the arguments for a 75basispoint move more compelling than those for a 50basispoint increase said bnp paribas economist paul hollingsworth the key development since the last meeting is the unveiling of new prime minister liz trusss fiscal package which is likely to lower inflation considerably in the short term but boost it in the medium term truss on wednesday launched a sixmonth plan starting in october to pay about half of energy bills for businesses charities hospitals and schools as she sought to soften the economic blow of skyhigh prices the premier had already announced plans for a twoyear energy price freeze for cashstrapped households finance minister kwasi kwarteng will unveil friday a minibudget of tax cuts designed to boost economic activity and will also outline the vast cost of the energy assistance yet the package threatens to ultimately push inflation higher as a result of strengthening demand according to us bank citi while the capping of energy prices is disinflationary in the first instance we continue to see many of these measures as boosting demand and increasing the risk of more embedded inflation wrote citi analysts in a research note commentators also warn the measures will ravage public finances that are already reeling from huge spending during the deadly covid pandemic barclays bank analysts estimate that the governments total costofliving expenditure could reach a colossal £235 billion 267 billion