15 December 2022 | Other

Bank of England prepares another rate hike despite the recession

On Thursday, the Bank of England raised the interest rate for nine times in a row. Such a step looked foregone. Due to this, the investors will have to find out how many times the bank needs to increase the rate because the economy is under threat of recession, and inflation is still above 10%. 

Last week, Reuters surveyed 54 economists. The majority forecasted growth of the bank rate by 0.5 percentage points and, as a result, a 14-year high of 3.5%.

Data released on Wednesday showed that last month the growth of consumer prices turned out to be less than the Bank of England’s expectation. Business surveys showed a decrease in economic growth. 

However, according to data released on Tuesday, the basic wage grew the most since 2001, excluding the pandemic. This would probably add concerns to some officials who fear that inflation persists.

The Organization for Economic Co-operation and Development informs that the British economy will be the weakest among the G7 countries in 2023. 

Company MarketCheese
Period: 04.10.2026 Expectation: 3800 pips
Go short on GBPUSD with downside potential to 1.31500
Yesterday at 09:37 AM 24
Period: 18.09.2026 Expectation: 600 pips
Buy Brent crude up to $100
Yesterday at 06:36 AM 27
Period: 03.10.2026 Expectation: 5100 pips
Sell USDJPY down to 152.00
03 September 2026 37
Period: 03.10.2026 Expectation: 175 pips
Invest in ETHUSD up to $2,565
03 September 2026 24
Period: 30.09.2026 Expectation: 13000 pips
Go long on Brent crude with $99.50 target
02 September 2026 38
Expectation: 1200 pips
SPX sell-off targets 7,500
02 September 2026 30
Go to forecasts