Bank of England Raises Interest Rates for First Time Since 2023

The Bank of England's surprise interest rate hike could negatively affect global risk appetite and create selling pressure in equity markets. The strengthening tightening trend among developed-country central banks may accelerate capital outflows from emerging markets. In economies with high external financing needs such as Turkey, upward pressure may build on the exchange rate and bond yields. In the short term, increased volatility is expected in BIST and Turkish lira assets.

The Bank of England's interest rate hike could negatively affect global risk appetite and put pressure on technology stocks. GOOGL has risen 3.9% over the past 24 hours and, with an RSI of 51, is not in overbought territory; however, the price remains below the SMA50 and the MACD is in negative territory. The rate hike news may create short-term selling pressure, but the impact could be limited because the news does not directly target a US-based company. Nevertheless, a cautious downward bias can be expected due to macroeconomic uncertainty.

The BoE's first rate hike since 2023 is a hawkish surprise for GBP and could support sterling in the short term. However, the price is currently at 1.3458, slightly below the SMA20 (1.3476), and the RSI at 44 indicates weak momentum; the MACD is below its signal line. The rate hike news may offset the technical weakness, so I see the direction as upward but with limited confidence. If a sustained break above 1.3476 is achieved, the upward move could accelerate; otherwise, the reaction may remain limited.

The Bank of England's first interest rate hike since 2023 is a hawkish surprise for the pound and is supportive of sterling. In the EURGBP pair, this news is expected to create pressure in favor of GBP, so a downward trend is anticipated in the pair. However, the current technical picture is weak: RSI at 39 is close to the oversold zone, the price is below the SMA20 and SMA50, and MACD is below the signal line; this suggests that the decline may be limited. In the short term, support around 0.8330 and resistance around 0.8342 should be monitored. I maintain a moderate confidence until the size of the rate hike and the accompanying guidance become clear.