The Weekly Wrap: all you need to know by Friday COB | June 17th

By Gaia Lamperti

The Weekly Wrap is published every Friday and recaps the week’s main stories and deals, as well as upcoming events and announcements. For Premium subscribers only.

The Big Story

The Bank of England (BoE) will hike interest rates for the fifth consecutive monetary policy meeting, in an effort to rein in soaring inflation against a backdrop of slow growth and a deteriorating currency.

Previously, in May, the raised its based rate to 1%, its highest level for 13 years, but warned that the British economy risks falling into recession. The decision from the latest meeting on Thursday this week is to raise interest rates to 1.25%. Inflation rates rising will limit peoples’ ability to add to savings and pay off debt.

“News of rising interest rates was expected; the economic outlook has deteriorated fast over the recent months. The news contributes to clouding business prospects at a time when inflation and energy costs soar and national insurance increases,” commented Tommaso Aquilante, UK Lead Economist at Dun & Bradstreet.“There’s also an unusually high public debt-to-GDP ratio, and coupled with the continuing effect of the Ukraine-Russia war on most of Europe, means businesses and governments continue to be plagued by uncertainty.”

“Businesses, particularly those that trade internationally or use suppliers that operate in overseas markets, may need to take further action to protect themselves from potential financial risks, especially those caused by increases in the GBP/USD or GBP/Euro exchange rates,” he added.

Deals of the week

• MFS Africa announces the extension of its Series C to $200 million led by Admaius Capital Partners
• Metropolis Technologies raises $167 million in its Series B funding round
• PayCargo raises $130 million in Series C Round with Blackstone Growth
• Allica Bank secures additional £55 million for future growth
• Upvest secures $42 million in a Series B funding round led by Bessemer Venture Partners
• Pazcare announced that it had raised $8.2 million led by Jafco Asia
• Nue.io Announces Closing of $6 million Seed Funding Round

Be on the lookout for

The Financial Conduct Authority (FCA) is planning tougher curbs on bank branch closures, warning that some banks and building societies are not currently doing enough to properly understand the impact of shutdowns on local communities. The FCA is also consulting on requirements for a more detailed analysis on how to assess the impact on customers when firms plan to close a branch, remove or convert an ATM or reduce the services they provide.

Events & Appointments

• Next week, on June 22nd, IBS Intelligence is hosting the NextGen Core Banking Summit, an exclusive gathering at the JW Marriott Hotel in London, looking to explore new implications for the core banking industry. You’ll hear the perspectives of industry experts from global banks and technology players on a wide range of topics reflecting emerging trends. Request an invitation to join us!
• IBS Intelligence is a proud research partner for FinTech Week London. Explore the concepts and evolution of FinTech and delve into the development of the industry and where we can go from here. The flagship conference 2022 will take place from Monday 11th July to Friday 15th July