The market has certainly noticed the slowing inflation with the pound down 65 pips today to the lowest since mid-August.
The market is 95% priced for a 25 bps cut in November but only about 75% priced for another cut in December. That’s too low.
- Inflation below target pushed around by annual base effects
- High savings rate reflects consumer caution
- Pensions funds should not have to make compulsory allocations to UK assets
This article was written by Adam Button at www.forexlive.com. Source