London stocks closed lower on Wednesday (August 31), with the biggest daily decline in seven weeks as rising inflation warnings in the coming months bolstered concerns regarding the economy. Severe recession in England
The FTSE 100 London Stock Exchange closed at 7,284.15, down 77.48, or -1.05%.
Britain’s inflation is hovering above 10 percent, its highest level in 40 years, while energy prices are likely to rise 80 percent from October and are expected to continue rising. while Goldman Sachs warned earlier this week that UK inflation might hit 20% early next year
A Archyde.com poll expects The Bank of England (BoE) will raise interest rates another 0.50% in September and postpone the hike to 0.25% in November before halting the rate hike.
Investors will await the announcement of Britain’s new prime minister on Sept. 5, with opinion polls suggesting Foreign Minister Liz Truss is a favourite. More than Mr. Rishi Sunak, former Minister of Finance.
The market was also pressured by survey results that indicated that British business confidence has dropped to its lowest level since March. 2022 as companies worry regarding rising inflation
