Market updates and forecasts

Get the latest economic news from ForexMart, including updates on the financial market, central banks' policy announcements, financial indicators, and other relevant news which can have an impact on the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

British indices fall after Bank of England rate hike


June, 22 2023
watermark Economic news

After a significant increase in the interest rate of the Bank of England, aimed at curbing inflation, the leading UK stock indexes continued their decline. This has increased concerns about a slowdown in the British economy.


The FTSE 100 index fell by 1.2% and reached a three-week low under the pressure of a sharply increased pound. The FTSE 250 index also fell 0.9%. The real estate, real estate and banking sectors suffered losses of about 2% and led the decline.


The Bank of England on Thursday raised its key interest rate by 50 basis points – from 4.5% to 5%, reaching the highest level since 2008. Market participants now believe that the rate will reach its peak in February and will be 6.05%, while before today's decision it was forecast at 5.9%.


Analysts note that the FTSE 100 index is lagging behind other world indices this year due to the volatility of commodity prices and the tough position of the Bank of England. The European STOXX 600 index has grown by 6.5% since the beginning of the year, and the American S&P 500 index – by 14%.


Other central banks also raised rates today: the Central Bank of Norway immediately raised the rate by 50 bps, to 3.75%, the highest since 2008. And the Central Bank of Switzerland – by 25 bps, up to 1.75% per annum.


Feedback

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.