Inflation in UK drops to 2.3%, possible rate cut in June by Bank of England

From Forbes: 2024-05-22 06:59:42

22 May: UK inflation drops to 2.3%, lowest since July 2021, near BoE target. Interest rate cut possible in June as gas and electricity prices fall. ONS reports CPI at 3.9% in April, core CPI at 3.9%, and CPIH at 3.0%. Bank of England to decide on rate cut on 20 June.

15 May: US inflation at 3.4%, likely no rate cut from Fed on 12 June. Core inflation at 3.6%, housing and fuel costs to blame for monthly increase. Fed struggles to reach 2% target, borrowing costs at 5.25%. Analysts unsure when rate cut will happen due to inflation trends.

9 May: Bank of England maintains borrowing costs at 5.25%. UK inflation falls from 11.1% in Oct 2022 to 3.2% in Mar 2024. April figure to be released on 22 May, potential for rate cut in June. Borrowers on trackers and variable mortgages unaffected. Lenders may adjust rates in response.



Read more at Forbes: Prices Up By 2.3% Solidifies Hopes For June Bank Rate Cut – Forbes Advisor UK