1023 GMT - The latest U.K. inflation data probably won't alter the Bank of England's cautious approach to cutting interest rates, which should support sterling this year, Ebury strategist Matthew Ryan says in a note. February inflation data were slightly lower than expected. However, core inflation at 3.5% is still well above the BOE's 2% target and services inflation remains elevated at 5.0%. The BOE would need to see more evidence of inflation easing before changing its stance and could deliver just two more rate cuts this year, he says. "This gradual approach to cuts should provide some solid support for the pound, which we still see as well placed to outperform most of its major counterparts in 2025." (renae.dyer@wsj.com)

(END) Dow Jones Newswires

March 26, 2025 06:23 ET (10:23 GMT)

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