asiangameshanoi| UK inflation cools less than expected Traders reduce central bank interest rate cut bet

UK inflation slowed less than expected last monthasiangameshanoi, exacerbating doubts about the timing of the Bank of England to start cutting interest rates.

The Office for National Statistics reported on Wednesday that CPI rose 2.5 percent year-on-year in Aprilasiangameshanoi.3%, down from the 3.2% increase in March, but above the 2.1% increase expected by the Bank of England and economists.

While inflation is currently at its lowest level since the summer of 2021, lingering signs of price pressure may make Bank of England Governor Andrew Bailey and his colleagues less willing to move quickly to cut interest rates.

Services inflation, which the Bank of England closely watches, is 5.9%, little change from 6% in March. The core price index, which excludes volatile food and energy costs, fell to 3.9% from 4.2%.

Given that UK inflation has slowed less than expected, traders have sharply cut their bets on the Bank of England to cut interest rates, and the market no longer expects the probability of two 25 basis points rate cuts this year. The market expects a 39 basis point rate cut by the end of the year-the equivalent of one rate cut, with a chance of a second rate cut of about 60%, while a 54 basis point rate cut is expected on Tuesday.