U.K. Inflation Fall Is Good News for BOE, Leaves May Rate Cut Possible -- Market Talk
Dow Jones
Mar 26, 2025
0955 GMT - The slowing of U.K. inflation to 2.8% in February from 3% in January could be welcomed by the Bank of England, says EFG Asset Management's Joaquin Thul in a note. "Although markets are currently pricing a rate cut at the June MPC meeting, the latest inflation numbers could lead us to expect that the next rate cut could come as soon as the May 8 meeting," the economist says. Clothing, footwear, housing and household services were the main drivers of February's fall in inflation. Money markets price in a 54% probability of a BOE rate cut in May and an 85% chance of a reduction in June, LSEG data show. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
March 26, 2025 05:55 ET (09:55 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.