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  • Bank Rate increased to 5% - June 2023

    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 21 June 2023, the MPC voted by a majority of 7–2 to increase Bank Rate by 0.5 percentage points, to 5%. Two members preferred to maintain Bank Rate at 4.5%. At the time of the previous MPC meeting and May Monetary Policy Report, the market-implied path for Bank Rate averaged just over 4% over the next three years. Since then, gilt yields have risen materially, particularly at shorter maturities, now suggesting a path for Bank ... (full story)

well damn they not messing round
5%, wow
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  • | IP XXX.XX.149.220
Buy the rumor, sell the fact! Look into the future!
As expected!! Foundamental will approve technical...
That'll be a surprise to many.

It's way too late in the scheme of things but, give credit where it's due, they have at least, and at last, indicated that they intend to react to the current sticky CPI.
Great GBP. 50 bps increased. Clear hawkish path to 186 to more
Gone to buy
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Necessary move, needed to at least match the US bank rates
5% unbelievable
>>>>>>>>BULL<<<<<<<<<
Quoting manahil
5% unbelievable
Passed by vote 7-0-2
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5%, but market do not want to up lol
Have to see if market thinks GBP or any currency is going to remain a yield story only. Or is it going to be about who is left standing after the inevitable shakeout comes from CB's reigning in inflation.
Really at a crossroads here in conflicting growth outlooks with unknowns coming from bad bank lending standards.

Higher yields because of growth is a positive. Higher yields as the last resort to impose order upon prices is something very different in outcome.


add: Safe haven flows are long overdue if one believes the latter of two outcomes is most likely.
This is a disaster for the UK economy, the mortgage rates are already insane, and this just going to exacerbate the issue. Those idiots don't realise that US has a completely different financial and lending system, and this is like increasing the rates to 7% in the US, the impact to middle class is going to be absolutely bonkers.
Quoting MatTrader101
This is a disaster for the UK economy, the mortgage rates are already insane, and this just going to exacerbate the issue. Those idiots don't realise that US has a completely different financial and lending system, and this is like increasing the rates to 7% in the US, the impact to middle class is going to be absolutely bonkers.
Good for investors...once the real estate market collapses. I don't care particularly about the UK, but more about Spain and Canary Islands, where Brits own a lot of property. And whats the first thing you sell during a crisis? Your second home. Once they start selling, it will be a good place to buy.
Everyone can see the chart, but only a few can actually read it.
Quoting DaJoWaBa
That'll be a surprise to many. It's way too late in the scheme of things but, give credit where it's due, they have at least, and at last, indicated that they intend to react to the current sticky CPI.
I'm surprised the consensus was 4.75 considering the CPI data. 5% shouldn't have been a surprise. BoE doing what I imagine any central bank would do. The problem for the UK is that this shows that the govt has probably decided to let (or facilitate) the economy crash. UK (and the west) have had years of low-cost debt and this will be painful for many.
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  • | IP XXX.XXX.153.196
Yes the market is bullish
Ideal time for BOJ to intervene.
GBPAUD entry of the day LONG
Quoting Bakker
Ideal time for BOJ to intervene.
This is not a speculation move. BOE is not a speculator.
Quoting Ftmofx
{quote}This is not a speculation move. BOE is not a speculator.
But somewhere BOJ need to step in.
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GBPJPY is nice buy. JPY interest rate is the same.
Quoting TableTop
{quote} I'm surprised the consensus was 4.75 considering the CPI data. 5% shouldn't have been a surprise. BoE doing what I imagine any central bank would do. The problem for the UK is that this shows that the govt has probably decided to let (or facilitate) the economy crash. UK (and the west) have had years of low-cost debt and this will be painful for many.
Maybe but the idyll of soft-landings is not a big target-area and probably fairly unlikely to be achieved.

One assured way to pop inflation is to induce a recession. No one would WANT that but it is a consequence of pulling out liquidity and puncturing confidence. For inflation to be so strong still in the UK even after energy and food price reductions or less inflationary, it has to be because the job market remains strong and the public and businesses still remain confident that the situation is temporary and they can see it through. Unfortunately that confidence needs to be dented.
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