WHAT DID UK CPI TELL US TODAY?
By Neil Crammond and Neelanjana Paul || 22nd May 2024
Picture taken from Investopedia
The chances of a June Interest Rate Cut is diminished from 50% to 13% and the chances of an August Rate Cut dropped from 100% to 50%.
WHY?
Inflation has not dropped in the UK despite the official figure dropping 2.3% from 3.2% in March.
WHY?
The OFGEM energy cap price was reduced by 12% on April 1st. Therefore, GBP rallied 127.61 and Short Term Interest Rate SONIA for September 2024, showed a rate hike of 0.2% pushing UK-10yYear Bond Yield up 3.54%.