# Investors increase bets on UK recession as rate hikes bite | Reuters

> 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.

- Date: 2023-06-22 · published 2023-06-22T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/35753-investors-increase-bets-on-uk-recession-as-rate-hikes-bite-reuters
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

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.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/markets/europe/investors-increase-bets-uk-recession-rate-hikes-bite-2023-06-22/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.