# Bank of England Raises Rates but the Pound is Dumped: Here is Why

> The Bank of England raised interest rates to 0.75% in a 9-0 vote, which surprised markets, and sterling initially rose before reversing. Inflation and growth forecasts were raised, and the central bank signalled further hikes over coming months.

- Date: 2018-08-02 · published 2018-08-02T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/63787-bank-of-england-raises-rates-but-the-pound-is-dumped-here-is-why
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

The hawkish rate path supports sterling over time but does not affect feed grain or protein supply and demand. Any commodity effect would only come through broader dollar moves.

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/gbp-live-today/9618-bank-of-england-live-pound-sterling-s-reaction-and-analysis

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