The threat of recession is on the horizon for Britain following the Bank of England’s decision to increase the interest rate by 50 basis points.
The hike caused a frenzy among market watchers, as it carried the rate to a steep 1.75% – the highest Britain has seen in nearly 30 years.
The pound regained some strength by the end of the week however more volatility may lie ahead for sterling over the week ahead. This follows BoE governor Andrew Bailey’s warning of up to a year-long recession and second rate-hike on the horizon for Britain later this year.
In the eurozone, all eyes will be on Germany this week as inflation rates will be announced.
In the US, job prospects seem to be on the rise as unemployment rates made a gentle decline from 3.6% to 3.5% last week. This was the first decline in 4 months. The number of job openings also surpassed market expectations.
Market watchers will be paying close attention to the US this week as inflation rates will be released on Wednesday.
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