(Bloomberg) -- Money markets have baked in a one-percentage-point Bank of England interest rate increase at the November policy meeting, betting that policy makers will rush to counter inflation in the face of more fiscal stimulus. 

A one point increase will lift interest rates to 3.25%, according to interest rate swaps tied to meeting dates. Expectations are for borrowing costs to rise to over 5.5% next year which would still be below the last peak set in 2007. BOE officials last raised rates by 100 basis points in 1989.

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