STAN, BIRG, HSBA: Stocks to watch as experts call for more rate hikes

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STAN, BIRG, HSBA: Stocks to watch as experts call for more rate hikes

 STAN, BIRG, HSBA: Stocks to watch as experts call for more rate hikes
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Highlights

  • Amid rising concerns over the UK economy marching towards recession and worse days ahead, the Bank of England (BoE) needs to raise interest rates more aggressively to avoid the fall of the Sterling against the strengthening dollar, policymaker Catherine Mann said.
  • At the Bank’s Monetary Policy Committee (MPC) meeting last week, Mann voted for a 0.5% increase in the interest rate, after the US Federal Reserve raised rates by 0.75 percentage points.

Amid rising concerns over the UK economy marching towards recession and worse days ahead, policymakers think that the Bank of England (BoE) increase the interest rate at par with other countries to fight the current situation. Policymaker Catherine Mann said that the central bank needs to raise interest rates more aggressively to avoid the fall of the Sterling against the strengthening dollar at present.

BoE needs to raise interest rates more aggressively in the current situation.

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Mann warned that the pound could come under pressure, which may further increase inflation in the country.

At the Bank’s monetary policy committee (MPC) last week, she voted for a 0.5% increase in the interest rate, after the US Federal Reserve raised rates by 0.75 percentage points. However, six members voted for a quarter-point increase to raise the interest rate to 1.25%.

Let us look at three FTSE-listed stocks that may get impacted by a further increase in interest rates.  

Standard Chartered Plc (LON: STAN)

The shares of the international banking company, Standard Chartered Plc, were trading at GBX 606.40, up by 0.40%, at 8:01 AM (GMT+1) on 21 June 2022. On a year-to-date basis, the company has provided its shareholders a return of 35.37% as of 21 June 2022. The current market cap of the company is £17,925.66 million, and it has offered an annual dividend yield of 1.5% to its investors.

Bank of Ireland Group Plc (LON: BIRG)

The shares of Ireland-based commercial bank, Bank of Ireland Group Plc were trading at EUR 6.56, up by 0.55% at 8:04 AM (GMT+1) on 21 June 2022. The group recently announced the completion of its acquisition of J&E Davy, an Ireland-based provider of capital markets and wealth management services, with a motive to enhance its commercial and strategic objectives. On a year-to-date basis, the company has provided its shareholders a return of 30.54% as of 21 June 2022. The current market cap of the company stands at £5,822.30 million.

HSBC Holdings Plc (LON: HSBA)

The shares of one of the leading financial services companies in the world, HSBC Holdings Plc were trading at GBX 532.50, down by 0.93%, at 8:08 AM (GMT+1) on 21 June 2022. On a year-to-date basis, the company has provided its shareholders a return of 18.78% as of 21 June 2022. The current market cap of the company stands at £107,917.02 million, and it has offered an annual dividend yield of 3.5%.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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