Bank of England hikes rates for fifth consecutive month
Following on from the Federal Reserve on Wednesday, the BOE moved to hike rates earlier today.
The Bank of England increases its benchmark interest rate by 25 basis points up to 1.25% on Thursday, as it continues its battle with inflation.
This is the fifth consecutive rate hike from the BOE, following its monthly meeting.
Unemployment in the United Kingdom unexpectedly rose to 3.8% last week, with inflation also hovering close to all-time highs.
As a result of today’s move London’s FTSE 100 closed 3.14% lower.
Oil rebounds after falling on Biden comments
Oil prices fell to start a second consecutive session on Thursday, following comments from the U.S. President Joe Biden.
Earlier today, comments were released where Biden was pressing oil refiners to increase supply, in order to help reduce costs.
Biden was quoted to have said, ″Companies must take immediate actions to increase the supply of gasoline, diesel, and other refined product”.
He then added, “At a time of war – historically high refinery profit margins being passed directly onto American families are not acceptable”.
WTI hit a low of $112.31 per barrel today during morning trading but rebounded sharply to end the afternoon above $117 as commodity prices continue to trend upward in the inflationary environment.
Tesla shares were also lower in today’s session, as the company confirmed it was increasing prices on its vehicles.
As a result of the global disruption to the supply chain the company stated that it is forced to increase prices.
It is expected that prices of all models will be increased by between $2,000 and $6,000 in coming months.
Shares in Tesla have fallen in recent months, as the global economy enters a recession, mainly driven by inflation and the war in Ukraine.
At the close $TSLA shares were 8.54% lower at $639.30.
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