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  • Bank Rate increased to 1.25% - June 2022

    From bankofengland.co.uk

    The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 15 June 2022, the MPC voted by a majority of 6-3 to increase Bank Rate by 0.25 percentage points, to 1.25%. Those members in the minority preferred to increase Bank Rate by 0.5 percentage points, to 1.5%. In the MPC’s central projections in the May Monetary Policy Report, UK GDP growth was expected to slow sharply over the first half of the forecast period and, although the labour market was expected to tighten slightly ... (full story)

Added at 7:04am

  • Bank of England hikes rates for the fifth time in a row as inflation soars

    From cnbc.com

    The Bank of England on Thursday implemented a fifth consecutive hike to interest rates as it looks to rein in soaring inflation. The Bank faces the unenviable task of bringing consumer prices back under control against a backdrop of slowing growth and a rapidly depreciating currency, while the U.K. faces a major cost of living crisis. At its May meeting, the Bank raised its base rate by 25 basis points to 1%, its highest level for 13 years, but warned that the British economy risks falling into recession. Since then, fresh data has shown that U.K. inflation soared to a 40-year high of 9% annually in April as food and ... (full story)

pound sharply down?
Quoting yoko
pound sharply down?
Give it a little while to see how it goes.
Quoting zapp
{quote} Give it a little while to see how it goes.
same like last month .... if later the Dows break 30 000 will see dollar strenthten again and 1,19 xx will be soon again
pound is in critical position with usd
Quoting zapp
{quote} Give it a little while to see how it goes.
Same pattern! Yesterday with FED +.75, Dollars dumped.
Tonight with Asia will go up.
Quoting zapp
{quote} Give it a little while to see how it goes.
crazy reaction, for example Australia raises rates aussie goes up, UK raises rates pound goes down
Liquidity swings. Take the weak hands.
  •  Guest
  • | IP XXXX:d117:24d7
Quoting yoko
{quote} crazy reaction, for example Australia raises rates aussie goes up, UK raises rates pound goes down
Maybe because how bad the GDP were for UK and its inflation is too high. 0.25 increase is not very good for them.
Dovish hike as Hawkish minority last time all voted for only 25 this time.
75 Basis for US remains extremely hawkish for US and only central bank doing so.
Market still may hit USD as so out of lockstep with economics.

add: GBP/USD is certainly not crashing on this. 100 pip plus is not a crash.

add#2 Although FF calendar says it was 9-0-0 Reuters said vote was same as last time 6-3 with minority wanting 50 basis.
Rate hike already priced in market expecting better then this so GBP going down and it will go further down if dollar strengthen it will break 1.1900 then it will go to test all time low.
Quoting yoko
{quote} crazy reaction, for example Australia raises rates aussie goes up, UK raises rates pound goes down
Check EURGBP , EUR is at 0%
BOE hikes and cable crashes... Why's that so??
Is there press release from BOE today ?
Quoting kwanelemsomi
BOE hikes and cable crashes... Why's that so??
Because the BoE only hiked rates by .25% while the Fed raised it by .75%. BoE is dovish compared to other major central banks.
Well, we are having a lot of surprises today!
I live in the future
God...so many questions about why... Because the Uk economy isn't going really well and now that they are increasing rates it will be worse... This could really go into stagflation... Australian economy instead could take some rate increases. Read the data then think and react
Check UKOIL(Brent) , its affecting GBP too
Quoting Robert1991
God...so many questions about why... Because the Uk economy isn't going really well and now that they are increasing rates it will be worse... This could really go into stagflation... Australian economy instead could take some rate increases. Read the data then think and react
Indeed. Saved me writing the same.
As noted earlier - market makers, push the price around to take out second guessers and weak hands. All the majors are raising rates to counter inflation. Trouble is the inflation is due to an 'artificial' creation of scarcity in base level commodities - oil, gas, wheat etc. The things that everything else depends upon for setting prices - stating the obvious. Also the flight to USD - still the currency of last resort. Interesting times.
  •  Guest
  • | IP XX.XX.61.122
What a bunch of muppets and Bailey is the head. A 0.25% hike in this inflationary period is a joke. This guy is a joke. A hike of 25 points further widens the spread, makes the pound weaker. As all commodities are priced in USD this creates even more inflation as your prices for energy especially petrol will go up even more. You can see the Bojo cronies pleading with Bailey the disaster not to raise too much otherwise the housing bubble will do the rest. Soon you will have the mob chasing the fat cats if they do not get this under control quickly. They should have raised by a full percentage point. The UK economy is running hot anyway with lowest unemployment numbers for decades
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