Expectations that the Bank of England may cut interest rates have risen after inflation held steady at 4%.
Analysts had expected a rise to 4.2% and the Bank of England had expected consumer prices inflation of 4.1%.
However, while traders have suggested that the holding of inflation at 4% could lead the Bank of England to change monetary policy, governor Andrew Bailey has dampened hopes, saying the latest inflation figures “pretty much leaves us where we were”.
