1225 GMT - The Bank of England could stay the course on its path of easing, despite April U.K. inflation coming in higher than expectations, Morgan Stanley's Bruna Skarica says in a note. The headline annual 3.5% CPI rate wasn't a particularly big beat, given that it was driven by administrative and travel one-offs, she says. Still, a June BOE cut looks a non-starter, even if May inflation will probably be more benign and the labor-market report in June will show a decent decline in pay growth. "A lot can happen until August," Skarica says, including declining inflation expectations. "We continue to expect a cut then, and sequential cuts to 3.25% by year-end," she says. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

May 21, 2025 08:25 ET (12:25 GMT)

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