By Walter Grand in Economy —

Bank of England raises rate by 0.75% to 3%, but looks like tightening cycle will weaken

Bank of England raises rate by 0.75% to 3%, but looks like tightening cycle will weaken
Photo by Museums Victoria / Unsplash

The Bank of England believes that if interest rates go behind the market rate curve, the U.K. economy will be in recession.

As a result, the Bank of England believes that peak interest rates will be lower than the market expects.