That suggests the Bank of England won’t follow the European Central Bank in cutting interest rates when it meets Thursday.
A rate cut in August, when UK policymakers meet next, is now also less likely.
Other economists, including analysts at Nomura, thought an August rate cut was still possible if pay rises and the price of services cooled further.
“For an August rate cut, we will need other economic news to play ball,” the analysts wrote in a note.
UK inflation peaked at 11.1% in October 2022, driven to a 41-year high by surging food and energy costs.
Persons:
”, Zara Noakes, Rebecca Florisson, Jake Finney
Organizations:
London CNN —, Bank of, Bank of England, European Central Bank, JPMorgan Asset Management, Nomura, “ Workers, Work Foundation, Lancaster University, PwC
Locations:
United Kingdom, England, United States, Europe