U.K. Inflation Update
Bank of England Governor Andrew Bailey has highlighted that the U.K.'s inflation rates are showing significant signs of decline, prompting expectations of potential adjustments to monetary policy. Specifically, the Bank of England is planning four quarter-point interest rate cuts in 2024, aiming to support the economy amid easing inflationary pressures. However, Bailey emphasized that uncertainties remain, particularly regarding global trade tensions, tariffs, and domestic economic policies, which could influence inflation dynamics and the broader economic outlook
Investors are closely watching these developments, with market pricing suggesting over 80 basis points of easing by 2025. This reflects cautious optimism paired with awareness of lingering economic risks