# Bank of England makes historic rate hike despite 'very challenging' outlook

> The Bank of England raised its policy rate to 3% from 2.25% on November 3, 2022, its largest increase since 1989. The bank warned of a very challenging economic outlook and forecast inflation reaching a 40-year high.

- Date: 2022-11-03 · published 2022-11-03T12:00:00.000Z
- Category: macro · region UK · magnitude medium
- Page: https://feedsoft.ai/events/38914-bank-of-england-makes-historic-rate-hike-despite-very-challenging-outlook
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Tighter UK monetary policy strengthens sterling via rate expectations but deepens the expected recession, weighing on UK demand for feed and meat. Currency moves affect the cost of imported feed ingredients priced in dollars.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/markets/europe/bank-england-makes-historic-rate-hike-despite-very-challenging-outlook-2022-11-03/

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