UK raises interest rates by half a percentage point
The Bank of England has followed on the heels of the US Federal Reserve in raising core interest rates. Unlike the US who raised by 0.25% the UK raised by a larger 0.5% which represents the more entrenched inflation problem existing in the UK. Markets have broadly been rallying on these rate hikes as central bankers have accompanied these hikes with talks of being nearly at the end of these sequential raises before they will be in a positon to step back and wait for inflation to begin to come down. The terminal level of rate hikes is something which interests the markets and any talk of this terminal date is something which causes positivity in asset prices.