Bank of England may have to raise rates to 5% this summer, says Goldman Sachs

US investment bank believes inflationary pressures could force monetary policy committee’s hand

The Bank of England could be forced to raise interest rates to 5% this summer, Goldman Sachs has warned, as Britain struggles to bring down the highest rates of inflation among the G7 group of advanced economies.

Threadneedle Street is widely expected to increase the cost of borrowing for households and businesses on Thursday for a 12th time in succession, with financial markets anticipating a quarter-point rise to 4.5%.