European stock markets declined on Thursday at the end of the second session; in a row, the British market being the exception. Investors were evaluating the results of the U.S. Federal Reserve, and the Bank of England meetings, as well as the quarterly reports of European companies.

Current European stock market prices – what’s going on in the market?

The Bank of England on Thursday decided to raise its benchmark interest rate to 3% from 2.25% per annum, as most analysts had expected. Thus, it was increased for the eighth consecutive meeting, and the rate of increase was the fastest since 1989, writes Trading Economics.

Most British Central Bank executives believe that the rate hike will continue. However, it was noted in the report of the bank following the meeting that the peak level of the rate is likely to be lower than the 5.25% per annum rate expected by the markets.

The Bank of England also published updated macroeconomic forecasts. Thus, the regulator expects the country’s GDP to shrink by 0.5% in the third quarter, which marks the beginning of a recession that could last for eight quarters. The Central Bank predicts that inflation will peak around 10.9% this year, while the previous forecast called for a maximum inflation rate of 13%.

The Federal Reserve on Wednesday expectedly raised its interest rate by 75 basis points and now has a range of 3.75-4% per year. It was raised by that amount for the fourth consecutive meeting. The rate is now at its highest level since January 2008.

The head of the Frs Jerome Powell said at a press conference after the meeting that it’s too early to talk about a pause in raising the rate. Also, he said that its cap will be higher than previously expected.

Earlier we reported that Wall Street stock indices are down on the statements of the US Federal Reserve.