The Bank of England may make its first rate hike by the end of 2022 - earlier than expected, and possibly even faster amid strong post-pandemic pickup and mounting inflation pressures, a Reuters poll showed.

Like central banks around the world, the Bank of England slashed borrowing costs in the midst of the coronavirus pandemic and started QE. But as the daily number of COVID-19 deaths has decreased thanks to large-scale vaccinations, life in the UK has largely returned to normal with GDP and inflation moving closer to the BoE targets.

The key rate, according to the poll conducted September 6-9, could be raised to 0.25% in the fourth quarter of 2022 from the current record low of 0.10%. In August, survey participants did not expect rate changes until 2023.

The move will allow the Bank of England to get ahead of the US Federal Reserve, which is expected to stay on hold until 2023, although the Fed is expected to start QE tapering this year, a separate Reuters poll showed.

When asked about the risk that the first rate hike by the Bank of England will happen earlier or later than expected, more than 80% of respondents answered that it is likely to happen earlier.