If the Bank does raise rates from 5.25% to 5.5%, it would be the highest point they have reached since 2008.

The anticipated rise in interest rates on Thursday would follow a similar move from the European Central Bank last week.

Edward Hutchings, head of rates at Aviva Investors, said he expected the Bank to deliver a further 0.25% hike.

He said: “With this being delivered the day after the latest inflation data, it’s the narrative of the MPC Minutes released that are absolutely key in determining the current thinking of the Committee. We expect they will be a little more balanced but also more forward-looking in their approach, thereby providing time to assess the lagged effects of the hikes delivered so far.”

Looking ahead he said the increase “will likely be the last hike in this interest rate cycle unless the employment data strengthens significantly further from here.”

Hetal Mehta, head of economic research at St James’s Place, said: “It’s now been two years since the MPC delivered a unanimous verdict on rates, and I doubt this week will end that run. With inflation still far above target, wage growth hitting new highs but GDP faltering, and the housing market moving further into negative territory, the BoE faces another tough dilemma.”

She pointed out that the European Central Bank has already signalled that it is likely now done with hiking rates, but added that the BoE has more work to do on wages and inflation.

She said: “Even if this week’s meeting does prove to be the last UK rate increase, it will be hard for the BoE to do an abrupt about turn. Having rates higher for longer is consistent with their aim of regaining their inflation-fighting credibility.”