Inflation & Prices

BOE Rate Hike Hangs in the Balance for Market as Inflation Slows

  • Latest figures ease concern of a persistent wage-price spiral
  • Investors cast doubt on hike from Bank of England on Thursday
WATCH: UBS’s Paul Donovan sees “lots and lots of complicated factors” impacting the BOE decision.Source: Bloomberg
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Traders are betting on an imminent end to the Bank of England’s string of interest-rate increases after inflation unexpectedly slowed to the lowest level in 18 months.

The Consumer Prices Index rose 6.7% from a year ago in August, less than the 6.8% gain the month before, the Office for National Statistics said Wednesday. Economists had expected a rise to 7%.