The UK central bank (BoE) has raised UK interest rates by 0.25% to 1% at its meeting today, in a continued bid to combat inflation running at 30 year highs. The BoE also signaled it expects a recession to take hold later in Q3 and into Q4, but that it is more important to continue to take steps to limit inflation. The bank expects inflation could peak at 10%, currently 7%, citing energy price inflation as a key driver. UK sovereign debt, which is sensitive to interest rate rises, was being sold following the news, allowing yields to rise. Sterling also fell on the news, likely due to the gloomy economic forecast from the BoE. UK equity was not strongly affected, with recent negative sentiment towards global risk assets still weighing heavily on UK equities. The FTSE All share remained near its March 2022 lows, whilst the internationally focused FTSE 100 remained steadier, boosted by a weak home currency.