0929 GMT - U.K. inflation strengthens the case for the Bank of England not hiking at all this year and instead keeping interest rates steady, Investec's Sandra Horsfield says in a note. The unchanged rate of 2.8% in May paints a brighter picture than expected, with only two subcategories of inflation--transport and, to a much lesser extent, communication--pushing up on the overall rate. The print release should reassure policymakers there is no urgency to hike rates, even as money markets price in one rate increase this year. "Even this, we think, could be unnecessary in an economy where a shakier jobs market limits the risk of second-round inflation building," Horsfield says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
June 17, 2026 05:29 ET (09:29 GMT)
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