-
UK services inflation to make or break a June Bank of England rate cut
It’s no exaggeration to say that this week’s UK inflation data will make or break a June rate cut from the Bank of England. Markets are pricing a 58% chance of that happening, at the time of writing. Certainly at a headline level, the story should be a good one. Overall inflation, previously 3.2%, is likely to fall to within a whisker of the Bank’s 2% target. Some of this can be traced back to the 12% fall in household electricity/gas bills that we saw at the start of April. And we’re likely to see something similar again in July. That’s when Ofgem – the UK’s energy regulator – next updates the ... (full story)