Sam Haidar, a strategic market advisor at One Royal, expected the Bank of England to raise interest rates by half a percentage point, in light of the continued rise in inflation.
He added, in an interview with Al-Arabiya, that the inflation rate in Britain for the month of May was higher than expectations, which reinforces expectations that the Bank of England will raise interest rates by 50 basis points. Market expectations are divided on the possibility of a rate hike.
On the other hand, Haider said that the US Federal Reserve during the past week raised inflation and interest expectations during the coming period, and at the same time fixed the interest rate, and these factors will pressure it to return to raising interest again at a faster pace.
He pointed to the impact of the problem of inflation moving from goods to the service sector and rising wages, and then raising interest rates will have less impact on curbing inflation, which will push the Fed to raise it at a faster pace.
He expected stock markets to decline in the coming months, affected by the recession of the economy and slow growth.