Stock markets bounce up after agency decision to raise the price of money by 50 basis points and warn that the UK will slip into recession
The Bank of England is stepping on the accelerator. The monetary body is months ahead of the European Central Bank (ECB) in the process of monetary normalization. And this Thursday, it took another step by raising interest rates by 50 basis points. This is the largest increase in the past 27 years and brings the reference rate to 1.75%. Translation: Interest rates in the country are back at 2008 levels.
Inflationary pressures have forced this new rise (stronger than the previous five, which were capped at 25 basis points), despite the institution itself, headed by Andrew Bailey, already openly acknowledging the possibility that the UK may have entered a recession in recent years. will end up. quarter of the year.
But that problem is now secondary. Like the rest of the world’s central banks, England makes it clear once again that the fight against inflation is the main target to be defeated. In June, the region registered a CPI of 9.4%. And the institution now expects to hit double digits, even more than 13%, in the coming months.
Investors had been anticipating this tightening of monetary policy for days. And European stock markets maintain their opening gains, with the Ibex-35 eventually recovering 8,200 points. The London Stock Exchange is also reacting to the increase with advances of 0.5%.
Within the national trading floor, the biggest mid-session gains were scored by Solaria (+3.79%), Fluidra (+3.19%), Grifols (+2.24%) and BBVA (+2.0%) .
Other large stocks such as Inditex or Repsol also supported the increase. But in the lower part of the table, Merlin Properties is still under pressure, down 8%, although it should be borne in mind that its shares are listed today without the right to receive a dividend (“ex-dividend”). Indra also lost 4.5% after Exane BNP lowered its recommendation to the company from ‘neutral’ to ‘underweight’.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
