Chances of UK interest rate cut decrease as inflation remains at 2.2% and rents continue to rise – live updates | Business

The Bank of England is less likely to cut interest rates tomorrow after an inflation report showed a rise in core inflation in August. The odds of no change to borrowing costs have risen to 73% this morning. Monica George Michail of NIESR notes that underlying inflation remains elevated, reducing the chances of a rate cut. UK rents have jumped 8.4% in the year to August, with London seeing the fastest growth. Google has won a legal challenge against a €1.49bn antitrust fine. UK house price inflation slowed in July, while Eurostat reports that inflation across the euro area was 2.2% in August. Asda appoints Stuart Rose as leader amid declining sales. The pound has strengthened as the likelihood of a rate cut fades after the inflation report. Analysts believe the BoE will pause tomorrow and leave interest rates unchanged. Professor Milas warns of potential inflation increases due to public sector pay deals. The Fed’s expected interest rate cut could have positive spillover effects on international growth. Overall, the UK economy remains uncertain amidst global economic challenges.

Source
Photo credit www.theguardian.com