This week we will discuss rate hike by Bank of England and BOE guided for long recession. In our 16th July 2022 article, we have discussed is Europe epicenter of next financial & economic crisis? We will continue to focus on Europe in today’s article.
BOE increase rate by 50 bps to 1.75%. Biggest interest rate hike in 27 years.
Why crisis in Europe could be the next epicenter?
After Russia-Ukraine crisis in February 2022, which was followed by sanctions on Russia by US & European nations. It triggered prices sky rocketed for food and energy where Russia & Ukraine was key supplier.
Interest rate, inflation and recession are the factors which will sooner or later impact corporate earnings, economic impact on individual as high inflation will impact purchasing power going ahead. US Fed’s objective to bring long term inflation to 2% for sustainable economic growth.
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Global Market – BOE warns of long recession
This week we will discuss rate hike by Bank of England and BOE guided for long recession. In our 16th July 2022 article, we have discussed is Europe epicenter of next financial & economic crisis? We will continue to focus on Europe in today’s article.
Bank of England is much behind the curve and inflation is expected to peak around 13% by October and yearly inflation could stable around 9% to 9.5%. BOE would continue to raise interest rate at higher rate to control inflation. BOE have projected economic contraction for Q4 2022.
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