# Bank of England hikes rates by 50 basis points, now sees 'much shallower' recession than feared

> The Bank of England raised its main rate by 50 basis points to 4%, a 7-2 vote and its tenth straight hike. It dropped the word 'forcefully' from its guidance and projected a much shallower output decline than previously forecast, with inflation expected to fall to around 4% by year-end.

- Date: 2023-02-02 · published 2023-02-02T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/37568-bank-of-england-hikes-rates-by-50-basis-points-now-sees-much-shallower
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A firmer sterling-supporting rate path and a milder recession outlook reduce UK demand weakness concerns, with little direct effect on feed grain balances. The main feed-price channel is via the dollar and sterling exchange rate affecting UK feed import costs.

## Read by commodity

- GBPUSD: bullish ▲

## Sources

- cnbc.com: https://www.cnbc.com/2023/02/02/bank-of-england-hikes-rates-by-50-basis-points-turns-less-bleak-on-the-economy.html

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