The Bank of England is likely to cut interest rates in the spring after falls in the rate of inflation.
Money markets are now pricing in a cut in March, following figures that showed consumer prices were rising at the weakest pace since October 2021. Before this week, investors expected no change in interest rates by the bank’s monetary policy committee until next September.
Annual inflation rose by 4.6% last month, lower than the 4.8% forecast by the bank, on the back of a sharp drop in energy costs and other domestic inflationary sources.
