On 6th May, the BoE raised interest rates for the third time this year by another 0.25% to 1%. Similarly, across the pond, the Fed raised its interest rate by 0.5% to a range of 0.75% to 1%.
At the same time, the BoE warned that the UK economy could shrink rather than grow in the last three months of 2022, and could contract next year. But any discussions surrounding a shrinking UK economy are very speculative and not at all certain at this stage.
It’s certainly true that markets are facing some very real challenges right now, but the signs of inflation peaking, solid company performance and no indication of a US recession are all positives worth keeping in mind.