GBP – Sterling fell on Thursday after the BoE raised interest rates by the most in 27 years as it seeks to tame inflation now seen peaking at more than 13% but also warned that a long recession is on its way.
Summarising the meeting and GBP’s reaction, ING simply stated “The pound is falling despite a 50 by hike by the BoE. The reaction mostly boils down to the BoE’s pessimistic outlook for the UK economy, with a recession now expected to start in the fourth quarter and to extend through next year.”
Summarising the meeting and GBP’s reaction, ING simply stated “The pound is falling despite a 50 by hike by the BoE. The reaction mostly boils down to the BoE’s pessimistic outlook for the UK economy, with a recession now expected to start in the fourth quarter and to extend through next year.”