Lloyds share price has been holding steady in anticipation of the Bank of England’s 12th rate hike. The bank’s shares have been trading at around 60p, with investors keeping a close eye on the central bank’s decision.
The Bank of England is expected to raise interest rates from 0.5% to 0.75% in August, which would be the highest level since March 2009. This move is aimed at curbing inflation, which has been hovering around 2.4% in recent months.
Lloyds, which is one of the UK’s largest banks, is expected to benefit from the rate hike as it will increase the bank’s net interest margin. This is the difference between the interest rate the bank charges on loans and the interest rate it pays on deposits.
However, there are concerns that the rate hike could also lead to a slowdown in the UK economy, which could impact Lloyds’ profitability. The bank has already warned that Brexit uncertainty could lead to a slowdown in lending growth.
Despite these concerns, Lloyds’ share price has remained relatively stable in recent weeks. The bank’s strong financial position and focus on cost-cutting have helped to reassure investors.
Overall, Lloyds’ share price is likely to remain stable in the short term, but the bank will need to navigate a challenging economic environment in the coming months. The Bank of England’s rate hike is just one of many factors that will impact the bank’s performance, and investors will be watching closely to see how Lloyds responds to these challenges.
