1226 GMT - The near-term risks to the U.K.'s inflation outlook have eased, reducing the Bank of England's need to tighten monetary policy, KPMG U.K.'s Yael Selfin says. Both headline and underlying measures of inflation in May were weaker than the BOE's April forecasts.The labor market also continues to soften, with wage growth showing no signs of rebounding despite the recent energy spike, she says. The recent fall in energy prices, if sustained, is set to bring some disinflationary effects, and policymakers are likely to opt to contain inflation risks through communication rather than tightening, she says. "We now expect the BOE to keep interest rates on hold for the remainder of the year," Selfin says.(edward.frankl@wsj.com)

(END) Dow Jones Newswires

June 18, 2026 08:26 ET (12:26 GMT)

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