Biggest UK interest rate hike in decades

The news this week has been dominated by interest rate hikes across the West.

On Tuesday, the Royal Bank of Australia announced a 0.25% increase taking their rate to 2.8%. This was followed on Wednesday by the US Fed who raised their rates by 0.75% to 4%. Finally, yesterday the Bank of England followed the US and saw a rise of 0.75% taking the UK rate to 3%; the biggest raise in decades.

This has had a negative impact on Sterling which lost much of its gains from the previous week. This has also been impacted by the highly gloomy warnings from the BoE that we are in a recession that is going to be potentially two years in length.

We’re expecting a quieter week next week with US inflation data released Thursday and UK GDP figures on Friday.

The UK very much remains in a holding pattern until the new Chancellors formal Autumn Statement on 17th November.

Want to recieve The Friday Update straight into your inbox?

Previous updates...

Sterling continues to gain against USD

Sterling continues to gain against USD

It’s been a pretty quiet week once again for the UK economy. There have been no major economic data releases, events or political activity. Sterling has to therefore benefitted from a comparatively negative week across the other side of the Atlantic. This week saw ‘worse than expected’ manufacturing and employment

A positive week for Sterling

A positive week for Sterling

Following the drama of the last couple of weeks, the last five days have been relatively quiet on the economic front. There were no major economic releases coming out of the UK. Over the course of the week, we’ve seen the Pound slowly gain ground against both the Euro and

UK digests new economic policies announced in Autumn Statement

UK digests new economic policies announced in Autumn Statement

It has been a huge week for the UK economy. On Tuesday the rate of unemployment rose slightly from 3.5% to 3.6%. This was swiftly followed by higher-than-expected inflation figures on Wednesday. UK inflation is now sitting at a whopping 11.1%, a 41-year high. Yesterday we saw the Autumn Statement

1 2 3 14