{"id":9289,"date":"2023-08-04T01:31:16","date_gmt":"2023-08-04T01:31:16","guid":{"rendered":"https:\/\/www.ultimamarkets.com\/?p=4442"},"modified":"2025-07-16T07:59:57","modified_gmt":"2025-07-16T07:59:57","slug":"boe-raises-interest-rates-and-the-pound-rebounds","status":"publish","type":"post","link":"https:\/\/www.ultimamarkets.com\/ar\/trade-news\/boe-raises-interest-rates-and-the-pound-rebounds\/","title":{"rendered":"BoE raises interest rates, and the pound rebounds"},"content":{"rendered":"\n

The Impact of BoE’s Interest Rate Hike on the Pound and the Economy<\/strong><\/h1>\n\n\n\n

To combat inflation, the BoE makes its 14th move to raise interest rates by 25 bps, marking a new high of 5.25% since 2008.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

(UK Interest rates in the past 25 years)<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

(BoE briefing in Aug.)<\/p>\n\n\n\n

<\/div>\n\n\n\n

BoE’s Battle Against Inflation<\/strong><\/h2>\n\n\n\n

BoE\u2019s consecutive 25bps rate hikes made the market no longer optimistic on the future, lowering the estimate from 5.74% to around 5.68%. Meanwhile the pound came under pressure. BoE has repeatedly emphasized its view that the British economy would not head for a recession and revised the GDP growth rate for 2023 from 0.25% to 0.5% in May.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Heavy Borrowing Costs<\/strong><\/h2>\n\n\n\n

High rates mean heavy borrowing costs, putting pressure on mortgage borrowers. Tenants also suffer as homeowners pass on their additional burden. The average two-year mortgage rate in the UK is now close to 7%. The future economic status will need to be verified by further data.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

(4-hour graph of GBP\/USD)<\/p>\n\n\n\n

<\/div>\n\n\n\n

GBP\/USD’s Reaction<\/strong><\/h2>\n\n\n\n

Technically, GBP\/USD gains upward space after interest rate hikes. In the 4-hour period, the price action shows a clear Wolfe wave. <\/p>\n\n\n\n

Point 3 is below point 1, point 4 retreats to the price range between point 2 and point 3, and point 5 rebounds upward after falling to the line connecting point 1 and point 3 yesterday.<\/p>\n\n\n\n

In the short term, GBP\/USD has a certain chance of rebounding. The first target is at point 4, and the second target is the line connecting point 1 and point 4.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Conclusion<\/strong><\/h2>\n\n\n\n

In conclusion, the Bank of England’s interest rate hike has introduced various challenges and opportunities in the financial landscape. <\/p>\n\n\n\n

With the pound’s fluctuations, the burden on borrowers, and the technical patterns in GBP\/USD, the economic impact of this decision will continue to unfold. <\/p>\n\n\n\n

It’s imperative for individuals and businesses to stay informed and make well-informed financial decisions in this evolving landscape.<\/p>\n\n\n\n

<\/div>\n\n\n\n
\n\n\n\n

Disclaimer<\/em><\/strong><\/p>\n\n\n\n

Comments, news, research, analysis, price and all information contained in the article only serve as general information for readers, and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Impact of BoE’s Interest Rate Hike on the Pound and the Economy To combat inflation, the BoE makes its 14th move to raise interest rates by 25 bps, marking a new high of 5.25% since 2008. (UK Interest rates in the past 25 years) (BoE briefing in Aug.) BoE’s Battle Against Inflation BoE\u2019s consecutive […]<\/p>\n","protected":false},"author":13,"featured_media":4532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[274],"tags":[25],"class_list":["post-9289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade-news","tag-news"],"acf":[],"yoast_head":"\nBoE raises interest rates, and the pound rebounds - Ultima Markets<\/title>\n<meta name=\"description\" content=\"The Impact of BoE's Interest Rate Hike on the Pound and the Economy To combat inflation, the BoE makes its 14th move to raise interest rates by 25 bps,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BoE raises interest rates, and the pound rebounds\" \/>\n<meta property=\"og:description\" content=\"The Impact of BoE's Interest Rate Hike on the Pound and the Economy To combat inflation, the BoE makes its 14th move to raise interest rates by 25 bps,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ultimamarkets.com\/ar\/wp-json\/wp\/v2\/posts\/9289\" \/>\n<meta property=\"og:site_name\" content=\"Ultima Markets\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-04T01:31:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-16T07:59:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ultimamarkets.com\/ar\/wp-content\/uploads\/sites\/18\/2023\/08\/Group-7764-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"169\" \/>\n\t<meta property=\"og:image:height\" content=\"258\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"mervin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mervin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/trade-news\\\/boe-raises-interest-rates-and-the-pound-rebounds\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/trade-news\\\/boe-raises-interest-rates-and-the-pound-rebounds\\\/\"},\"author\":{\"name\":\"mervin\",\"@id\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/#\\\/schema\\\/person\\\/acd24ecc8c3b66996759943157711472\"},\"headline\":\"BoE raises interest rates, and the pound rebounds\",\"datePublished\":\"2023-08-04T01:31:16+00:00\",\"dateModified\":\"2025-07-16T07:59:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/trade-news\\\/boe-raises-interest-rates-and-the-pound-rebounds\\\/\"},\"wordCount\":378,\"image\":{\"@id\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/trade-news\\\/boe-raises-interest-rates-and-the-pound-rebounds\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/wp-content\\\/uploads\\\/sites\\\/18\\\/2023\\\/08\\\/Group-7764-1.png\",\"keywords\":[\"news\"],\"articleSection\":[\"Trade News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"\",\"url\":\"https:\\\/\\\/www.ultimamarkets.com\\\/ar\\\/wp-json\\\/wp\\\/v2\\\/posts\\\/9289\",\"name\":\"BoE raises interest rates, and the pound rebounds - 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