Reported 3 months ago
UK inflation showed unexpected resilience in June, with the annual consumer price index remaining at 2%, contrary to economist predictions of a drop to 1.9%. This persistence raised doubts about the Bank of England's ability to cut interest rates at the upcoming August meeting, causing the British pound to strengthen against the dollar. Factors like increased hotel prices due to the influx of international fans for concerts by stars like Taylor Swift are believed to contribute to the inflation pressure. As a result, market expectations for a rate cut diminished significantly.
Source: YAHOO