Bank of England considering rate cut due to UK inflation drop and concerns over energy costs

From Investing.com: 2025-04-16 06:00:00

The UK annual inflation rate dropped to 2.6% in March 2025, lower than expected, with decreases in recreation, culture, and transport prices. Markets are pricing in an 85% probability of a Bank of England rate cut in May. Analysts debate whether inflation has bottomed out, with concerns about rising energy and water bills potentially pushing inflation higher. Energy prices are expected to contribute to higher inflation moving forward, with forecasts putting April’s CPI figure at 3.2% and rising to 3.5% later in the year. The GBP/USD technical analysis shows a need for a daily close above 1.3261 for further gains.



Read more at Investing.com: BoE Prepares for Rate Cut Amidst Falling UK Inflation and Energy Cost Concerns