# Bank of England shocks markets with a 0.5% rate hike

> The Bank of England surprised markets on June 22 by raising its rate 0.5 percentage points to 5%, the highest since 2008. The move was larger than the 0.25 point hike that had been expected. The article notes the decision as a surprise to market expectations.

- Date: 2023-06-22 · published 2023-06-22T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/35761-bank-of-england-shocks-markets-with-a-0-5-rate-hike
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A larger-than-expected hike tightens UK financial conditions and tends to firm sterling in the short run, which can affect the cost of dollar-priced imports. The direct effect on feed commodities is limited.

## Read by commodity

- GBPUSD: neutral

## Sources

- economies.com: https://www.economies.com/forex/gbp-usd-news/bank-of-england-shocks-markets-with-a-0.5-rate-hike-42989

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