Later, as part of its effort to combat rising prices, the Bank of England is anticipated to raise interest rates for a record 13 times.
Official data released on Wednesday revealed that in May, the annual rate of inflation, or how much prices rise, remained unchanged at 8.7 percent.
The Bank is now more likely to announce an increase in its benchmark rate from 4 point 5 percent as a result of this.
There is disagreement over the effectiveness of interest rates as a primary tool for reducing inflation.
According to analysts, a rise to 4 point 75% is most likely, though a bigger rise to 5% is still a possibility.
Some homeowners would experience additional pain as a result of any such change, but savers might gain from it.
Since December 2021, the Bank rate has been steadily rising in response to the skyrocketing cost of living, and it is currently at its highest point in roughly 15 years.
According to the theory, as interest rates rise, people will have less money to spend, which will reduce demand and slow the rate of price increases.
Following a meeting of the Bank's Monetary Policy Committee, which determines rates independently of the executive branch, a further increase is anticipated to be announced at 12:00 BST on Thursday.
Prime Minister Rishi Sunak will reiterate his commitment to halving inflation by the end of the year in a speech he is scheduled to give shortly after the decision is made. He will also say that he feels a "deep moral responsibility" to ensure that the money you earn retains its value.
The target can be hit, he is "completely confident," he is expected to say at a business event in south-east England.
The government has come under fire from Labour's shadow chancellor Rachel Reeves for how rising rates are affecting homeowners.
She stated this prior to the rate decision: "Instead of fighting over peerages and parties and ruling out any action on mortgages, the Tories should be taking responsibility and acting now. ".
Inflation remained at 8 point 7 percent on Wednesday, according to the Office for National Statistics. Analysts who had predicted a decline in that were taken aback.
Although higher airfares and used car prices were major contributors to the shocking figure, supermarket food prices also kept rising quickly.
Last month saw the fastest growth in "core" inflation in 31 years. This measure of inflation excludes volatile items like the cost of direct energy and food, as well as the cost of alcohol and tobacco.
The UK now stands out from other nations where inflation is declining, such as the US and Germany, according to economists.
In an apparent attempt to support further interest rate increases, Chancellor Jeremy Hunt stated that the government would "not waver in our resolve to support the Bank of England as it seeks to squeeze inflation out of our economy.". ".
The government wants to reduce inflation by half, to 5%, by the end of the year. The Bank's official, long-term goal is 2 percent.
"Getting the inflation genie back into the bottle is proving troublesome for the Bank of England," said Rob Morgan of the investment firm Charles Stanley.
"With price momentum consistently exceeding expectations and strong wage data, the Bank is forced to continue on a path of several more interest rate increases. ".
Numerous loans may become more costly as interest rates increase. The majority of the more than 1 point 4 million borrowers with tracker and variable rate mortgages experience an immediate rise in their monthly payments.
Those with a typical tracker mortgage would pay about £24 more per month as a result of the increase in the Bank rate from 4.5 percent to 4.75 percent. Mortgage holders with standard variable rates would see a £15 increase.
Additionally, there have been increases since the most recent rate increases. Average tracker mortgage customers would pay an additional £441 per month compared to pre-December 2021, and variable rate mortgage holders an additional £282 per month.
On a typical tracker mortgage, those who have a rate increase to 5% would pay about £47 more each month. Those with conventional variable-rate mortgages would see a £30 increase.
Most mortgage customers—eight out of ten—have fixed-rate loans. They may not see a change in their monthly payments right away, but remortgaging or purchasing a home will result in a significant increase in repayments.
The infamous "mortgage bomb" has grown into a significant economic and political issue. In November 2021, the average two-year fixed rate was 2.29 percent; today, it is higher than 6 percent.
Rising interest rates, according to the politically neutral think tank Institute for Fiscal Studies (IFS), could cause 1 in 4 mortgage holders to have less money available to them after paying their mortgages.
Additionally affected are renters. The IFS stated that it is likely that at least a portion of the rent increases we are witnessing are a result of high interest rates increasing landlords' cost of borrowing.
According to exclusive data provided to the BBC by property portal Zoopla, rent growth has been outpacing wage growth in the UK for almost two years.
Meanwhile, a rise in interest rates should benefit savers, but Treasury Committee MPs have criticized banks and building societies for failing to fully pass this along to devoted savers who have instant-access savings accounts.
