⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here


Will the BOE Stop Hikes As Economy Deteriorates?

Posted Friday, January 13, 2023 by
Skerdian Meta • 1 min read

The Bank of England has been raising interest rates for more than a year, although that hasn’t kept the GBP from falling. GBP crashed in September last year, as UK gilt yields surged higher. But, the sentiment improved after intervention by the BOE at the end of September, which has been pushing GBP/USD higher against the USD.

Bank of England Monetary Policy Committee member Catherine Mann spoke yesterday, making a point for further rate hikes by the BOE, despite the economic slowdown and the fall in energy prices although she is at the hawkish end of the spectrum among MPC members. Catherine Mann dissented at the December meeting, placing her vore for a +75bps rate hike, while the Bank of England raised its rate by 50bps.

Catherine Mann Comments:

  • “You have a lot of different ways of looking at it. My reading is we’re not there yet”
  • There is no risk of over-tightening at present

Mann pointed to the past rises in energy prices and pressures on costs are currently being passed on into higher consumer prices:

  • “That’s what we’re worrying about”
  • “That underlying inflation dynamic looks pretty robust right now. Our job is to bring that back to 2%.”

The Bank of England’s bank rate is 3.5% after the 50 bps hike in December. Although, the economy on the other hand has been showing some bearish pressure.

GBP/USD Live Chart 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments