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05.08.2022 11:54 AM
UK inflation is likely to hit 13% by the end of the year

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The Bank of England decided to raise interest rates by 50 basis points to 1.75%.

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As a result, GBP/USD fell by 1,400 pips, and currently has good potential for a further decline.

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because companies are having trouble hiring the people they need, as well as feel the need to raise prices.

He stressed that the central bank must act to prevent a further growth in inflation, which is rising at its fastest pace in four decades. So far, it is projected to top 13% by the end of this year.

The outlook pushed the FTSE index to close yesterday in negative territory, with significant downside potential.

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Bailey said the risk is that high inflation may extend, not going down as what was expected. He added that there is a decrease in the workforce as businesses had trouble hiring people, as well as had to raise prices.

Andrey Shevchenko,
Analytical expert of InstaForex
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