The Bank of England’s monetary policy meeting will be the main event this week as the central bank is widely tipped to hike interest rates by a quarter point.

This will bring the interest rates to 0.50%, the same level as it was a few months after the Brexit referendum in June 2016.

Despite the rate hike, the Bank of England is expected to maintain a dovish stand with further rate hikes coming at a very gradual pace.

With inflation hitting 3% but wages failing to rise, further rate hikes could be detrimental to the economy as consumers feel the pinch of higher rates.

Added to the complexity is the ongoing BREXIT talks that have shown no signs of progress.

With the BoE repeatedly cautioning that the uncertainty will affect the UK markets and the economy, the central bank’s rate hike this week is expected to be a symbolic one rather than signal monetary policy tightening.