15 June 2023 - Will UK rates go as high as 5.5%?
The UK economy returned to moderate growth in April as services activity bounced back. Consumer activity was the strongest that has been seen so far this year. A positive first quarter was marred by a contraction of 0.3% in March, but the economy made up for that with growth of 0.2% in the first month of the second quarter. As fears of a recession this year recede, the Bank of England received support from the Chancellor of the Exchequer, Jeremy Hunt, who commented that the Monetary Policy Committee faces little choice but to continue to raise interest rates in the face of stubborn inflation. He went on to say that the Government would be “unstinting” in its support for the Central Bank to do what it takes to defeat inflation. With the base rate of interest already at 4.5% and another meeting scheduled for next week, there is speculation that it could reach 5.5% before the end of the year. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.