0917 GMT - Investors modestly dial down their expectations for the Bank of England to cut interest rates in August after above-forecast U.K. inflation data. U.K. annual headline inflation rose to 3.6% in June from 3.4% in May, above the WSJ consensus forecast for the reading to stay at 3.4%. Markets price in an 83% probability of a BOE rate cut in August down from an 88% probability priced in at the start of this week, LSEG data show. Strong inflation is likely to make the BOE's monetary policy committee members more cautious about future interest-rate cuts, Capital.com's Daniela Hathorn says in a note. "The inflation surprise adds complexity to the Bank of England's rate path," she says. (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

July 16, 2025 05:17 ET (09:17 GMT)

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