Steady UK inflation leaves question mark over BoE rate action [Reuters (UK)]
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Source: Reuters
Steady UK inflation leaves question mark over BoE rate action | Reuters 4 Min Read LONDON (Reuters) - British inflation unexpectedly held steady in October, wrong-footing the Bank of England and raising fresh questions about how fast the central bank will follow up on this month’s interest rate hike. The annual rate of consumer price inflation was unchanged from September’s five-and-a-half-year high of 3.0 percent, official data showed. When the Bank raised rates for the first time in a decade in early November, it said it expected inflation would hit 3.2 percent in October before starting to fall slowly towards its 2 percent target. “Red faces all round as UK inflation fails to rise as widely expected, not least by the Bank of England,” said Chris Williamson, chief business economist at financial data company IHS Markit. Sterling fell against the dollar and British government bond prices rose as markets lengthened the odds slightly on a new BoE rate hike in the foreseeable future. Mo
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