 Sterling is taking a modest step back today, responding to UK's latest inflation report that came in below market expectations. Despite this, the actual figures for both headline and core CPI merely held their ground compared to the previous month's readings, signaling continued pause in disinflationary progress. Additionally, the report highlighted a slight uptick in services inflation. Consequently, the data underscores a lingering necessity for the BoE to adopt a wait-and-see approach, and data more economic data before acting on interest rate. August still appears more feasible than an earlier first cut in May. Consequently, Sterling's reaction was measured, reflecting a cautious recalibration of expectations rather than a drastic reassessment of the BoE's monetary policy path... |
