High U.K. Inflation Lowers Chance of BOE Rate Cut in June -- Market Talk

Dow Jones
2025/05/21

0704 GMT - Stronger-than-expected U.K. inflation for April raises concerns about inflationary pressures and reduces prospects of the Bank of England cutting interest rates in June, Patrick O'Donnell, senior investment strategist at Omnis Investments, says in a note. U.K. annual headline inflation accelerated to 3.5% in April, above the 3.4% consensus forecast by economists in a WSJ poll. Annual core inflation advanced to 3.8%, stronger than the 3.6% consensus forecast in a WSJ survey. "This data should call into question whether there is a cut at the subsequent meeting in August," O'Donnell says. After the release, money markets are now not fully pricing in a U.K. rate cut until November, LSEG data show. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

May 21, 2025 03:04 ET (07:04 GMT)

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