Published June 14, 2022 1:00 pm est
by Richard F. Cason, 
Editor in Chief,
NewsMovesmarketsForex
Key Issues-
- Bank of England Monetary Policy Committee Meeting Scheduled for Thursday, June 16, 2022 consensus- expected to raise the Bank rates by .25 bps to 1.25%
- UK April MoM Gross Domestic Product Contracts by .03 percent which reflects two second consecutive months GDP losses
- Globe supply chain disruption -negatively impacting UK major business sectors, rising food and energy prices, high inflation permeating through out the UK
- Ukraine Russian Conflict suffocating trade and pushing up food and energy prices
The Bank of England Monetary Policy Committee is scheduled to meet on Thursday, June 16, 2022. It is widely expected that the BOE will raise the Bank Rate by .25 bps.
The Central Bank is faced with serious economic problem’s plaguing the United Kingdom including run away inflation, rising food and energy prices, declining 2022 MoM GDP numbers, major supply shocks and very tight labor markets.
Possible Looming UK Economic Recission
In the last May’s 2022 Policy Meeting the Governor Andrew Bailey was asked a specific question by a BBC reporter concerning the topic of recession and rate hike, (Question):
” This appears to be very close to a recession I don’t know how you defined it but how do you justify this to households hit by this cost of living crisis further exacerbating that in the middle of what very much looks like a recession.”
Governor Bailey responded to this question by stating that: “It is a very week projection a sharp slow down, its a technical definition of a recession …put that to the side, it’s a very sharp slow down in activity.”
Ok lets Fast forwarded to the present date, the question posed by the BBC reporter seems to have a glaring resemblance of what is going down right now, the people of UK and across the globe are being hit with relentless inflationary pressures from exorbitant food, electrical, and gas prices that are being propelled by global supply chain disruptions, the Russian invasion of Ukraine as well as the China COVID-19 lock downs.
Will The Bank of England Hike Rates in the Policy Meeting Schedule for Thursday of this week?
I specially asked world renowned economist Marc Ostwald who is an expert Chief Economist & Global Strategist with ADM Investor Services International head quartered in London England, 
his insights and opinion on what he thought the Bank of England would do in Thursdays interest rate decision meeting and Mr. Ostwald stated:
“The Bank of England is expected to stick to its less aggressive rate path, with a 25 bps rate hike to 1.25%. As this is a non-Monetary Policy Report meeting, the focus will initially be on the degree of dissent on the vote (consensus looks for 6-3, with Haskel, Mann & Saunders voting for 50 bps), along with the statement and minutes.
The MPC faces an unenviable task, with inflation skyrocketing, inflation expectations jumping, forecasters predicting the economy will at best stagnate in 2023 if not fall into recession, and its public approval rating falling into negative territory for the first time since it gained independence in 1997 (not to mention a chaotic and beleaguered government).
It is likely to stick to its very loose guidance on rates, i.e. that further rate hikes ‘may be necessary’ in coming months. The key question for this meeting is whether it sees the latest fiscal measures as easing the pressure on household spending, and by extension mitigating some of the recession risks.”
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Global Expert Economist:
Marc Ostwald an expert Chief Economist & Global Strategist with ADM Investor Services International
Marc Osterwall is a world renowned Expert Economist who Analyzes and forecast macro/microeconomic trends and central bank policies on a exponential economic level. Mr. Osterwall is a regular guest on Bloomberg BNN, HT & Radio, BBC, CNBC, Le Fonti International and is widely quoted on newswires, newspapers, and other digital media worldwide. He is also a regular conference speaker and guest lecturer at various universities.
