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The Bank of England raised its policy rate by a larger-than-expected half point to 5% on June 22, 2023. Investors increased bets on a UK recession and on rates peaking near 6% early next year.
Sterling slipped 0.4% against the dollar that week while UK short-dated bond yields hit 15-year highs.
A jumbo hike that fails to lift sterling signals recession fears, which weigh on the pound and can strengthen the dollar against UK-linked trade. The effect on feed commodity prices is indirect.
reuters.comNaomi Rovnick, Harry RobertsonJun 22, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
