Home » Currency Note » Currency Note » Currency Note GBP » GBP: Bailey warns recession looms

The pound fell sharply yesterday afternoon, weakening by over 1% against the euro, following the Bank of England’s decision to raise interest rates in the UK by 50 basis points to 1.75%. This morning sterling has made a slight recovery.

While this hike was largely priced in by markets, BoE governor Andrew Bailey said that the UK is expected to enter a recession in the final quarter of 2022, which sent sterling lower. This recession is anticipated to last until the end of 2023.

Bailey also warned that inflation will likely hit 13% in October, the highest level in 42 years, and another 50 basis point interest rate hike may be needed in September.

This morning, data revealed that UK house prices have fallen for the first time in more than a year. The average price of a home was £293,221 in July, down 0.1% month-on-month.

Find out how we can help you

Let us know a little more about your upcoming currency exchange needs. We aim to take the uncertainty away by providing guidance on which services suit your individual requirements. You can then rest, assured your money is not at the mercy of the currency markets.

Secure and efficient transfers

Secure, quick and efficient transfers. Authorised by the FCA.

Protect against risk

Avoid losing money and protect against currencies moving against you.

Dedicated trader

Dedicated currency trader working with you to get the best value for your money.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

  • This field is for validation purposes and should be left unchanged.

Refer a friend or business

Recommend our services to your friends, family or colleagues and earn great rewards.