The Bank of England decided to vote to raise interest rates by 50 basis points in its meeting moments ago, to reach 1.75%, as expected for the sixth consecutive meeting, in the largest rate increase in 27 years.
The interest report issued by the bank stated that the members of the bank voted by 8-1 to raise interest rates by 50 basis points, while one member voted to raise interest rates by 25 basis points.
The interest statement issued by the Bank stated that the GDP is slowing and the UK is expected to enter a recession from the fourth quarter.
The inflation index represented in the annual consumer price index rose to 9.4% in June, as inflationary pressures in the United Kingdom intensified and is expected to reach 13% in the fourth quarter of this year due to gas prices and Russian restrictions to Europe in addition to energy prices.
The British pound reacted strongly negatively after the meeting and is now trading at 1.21 levels, as we mentioned in the morning report that the rate of hike is expected in the markets and the movement will depend on the future outlook for the interest rate.
02/11/2024
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