BOE odds hardly changed after the UK CPI report yesterday ...Middle East

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BOE odds hardly changed after the UK CPI report yesterday

here. But as mentioned then, there were some caveats to the latest jump in inflation numbers. For one, a steep rebound in airfare prices was a key contributor alongside the introduction of VAT on private school fees. Meanwhile, the monthly figures actually reflected a decline in price pressures relative to December last year. So, there's that.

In any case, traders are not looking too much into all of that as such. The odds of a May rate cut were ~71% previously but are now down to just ~68%. As for the entirety of the year, traders are still looking for ~50 bps of rate cuts by the final meeting in December. So, that hasn't changed.

    This article was written by Justin Low at www.forexlive.com.

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