According to data from the Office for National Statistics on Wednesday, U.K. inflation remained stable at 2.2% in August.
The consumer price index (CPI) figure aligned with analysts’ forecasts and mirrored the previous month’s reading of 2.2% in July. In May and June, headline CPI was recorded at 2%, matching the target rate set by the Bank of England.
The Bank of England is scheduled to announce its latest monetary policy decision in a meeting on Thursday, with market expectations leaning towards no change in interest rates.
Nonetheless, the likelihood of a second consecutive 25 basis point decrease has doubled to nearly 40% this week, primarily influenced by expectations of a more aggressive rate cut by the U.S. Federal Reserve, convening on Wednesday.
