Reported 8 months ago
Traders have decreased expectations of a Bank of England rate cut following higher-than-expected services sector inflation figures in May. The markets now indicate a 30% chance of a cut in August, down from 45%, with one cut fully priced for November at 25% and a second cut at 60%, reduced from 80%. Despite headline inflation aligning with the central bank target after almost three years, the services sector's strong inflation has led to caution among policymakers, causing a decline in rate-cut expectations from the start of the year when up to six cuts were anticipated.
Source: YAHOO