The stock market in the UK could be exposed to some volatility ahead of the Bank of England’s interest rate decision tomorrow. This is particularly the case after inflation figures were higher than expected earlier today, introducing more uncertainty.

Inflation remains at elevated levels and is not declining as fast as hoped which could push the central bank toward a more aggressive stance in terms of monetary policy. The British economy could also come under more pressure under higher interest rates which could affect traders’ sentiment and appetite for risk.

The increased uncertainty over the size of the interest rate hike could create significant volatility in the stock market after the Bank of England’s meeting.