UK inflation slide fuels rate cut bets and jolts markets
Publishing timestamp: 2023-12-20 09:46:26
Summary
The UK inflation rate fell to 3.9% in November, lower than expected. This prompted speculation that the Bank of England may cut interest rates in 2024. The drop in inflation led to a decrease in British bond yields. The FTSE 100 was the only major European stock index in positive territory. The Bank of England has maintained a hawkish tone and emphasized the need for restrictive policy. The UK Finance Minister welcomed the figures but acknowledged that many families are still struggling with high prices. Economists believe that the fall in inflation could lead to the Bank of England loosening policy in the future. However, the broader economic picture remains complex and marred by stagnation and subdued growth prospects.
Sentiment: MIXED
Keywords: banks, economy, ftse 100, world economy, business news, breaking news: economy, british 10 year gilt, breaking news: europe, inflation, central banking,