Despite UK inflation meeting the Bank of England’s 2% target for the first time in three years earlier today (19 June), higher than expected prices for services have led investors to dial back on expectations for an interest rate cut tomorrow.
The Bank's Monetary Policy Committee is set to meet on Thursday (20 June) to decide the next step in the UK's interest rates path and is widely expected to continuing holding rates at 5.25%. While inflation saw an overall decline, core inflation, the measure that strips out more volatile components, remains high at 3.5%. Underlying areas such as services and home ownership costs were "unlikely to fall away anytime soon", however, according to Michael Field, European market strategist at Morningstar. UK inflation returns to 2% target but June BoE cut remains unlikely He argued to...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
