Finance Brief: The Bank of England just raised rates, and oil is still digesting its crash
Finance Brief: The Bank of England just raised rates, and oil is still digesting its crash
Britain's central bank raised its main interest rate on Thursday, and it warned that prices could keep climbing into next year. That matters for your money because it tells you the world's big central banks are not done fighting inflation, even as growth slows.
The Bank of England lifted its rate to 4% and said inflation could reach 5% in 2027, blaming the Middle East conflict for pushing energy prices higher. That same shock is still working through oil: Brent crude crashed about 9% on Wednesday to around $94 a barrel after the US midterm results raised hopes of an end to the Iran war, and it was trading around $95 to $96 on Thursday afternoon.
Gold is the other side of that trade. Spot gold held above $4,100 an ounce on Thursday, around $4,120, as investors kept their hedge against both war and inflation.
In Türkiye, the BIST 100 traded around 11,400 in afternoon trade, slightly below Wednesday's 11,478 close, and the lira sat near 50.05 to the dollar. In Uzbekistan, the central bank set the dollar at 11,973.48 sums for November 6, and Kazakhstan's government reviewed a new capital markets law after its stock and bond market nearly doubled in five years, to 99.8 trillion tenge.
The picture: the war premium is coming out of oil, gold is holding its gains, and central banks are still tightening into a slowdown. The levels to watch are Brent at $90 below and $100 above, and gold at $4,000, which has held so far.
Information only, not financial advice.
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