Lates News

The UK's inflation in October matching expectations has strengthened market expectations of a rate cut by the Bank of England in December. The pound fell slightly after the data was released. "Signs that inflation has peaked are likely to prompt the Bank of England to lean towards a rate cut in December," Schroders economist George Brown said in a report. However, whether further rate cuts will follow will depend on the content of the UK budget on November 26. LSEG data shows that the market currently predicts a 79% probability of a rate cut by the Bank of England in December.