Financial markets are on standby for the US Federal Reserve to increase interest rates by 0.75%, the biggest move since 1994.
Bets on the Fed making the aggressive hike tonight have soared in recent days after US inflation jumped to a 40-year record of 8.6%.
The Bank of England’s monetary policy committee, which begins its two-day meeting today, is under pressure to increase rates by 0.5%. The pound weakened to below $1.20 last night as traders factored in the latest central bank moves.
