UK interest rates. Goldman Sachs and Nomura analysts stated that they see a possible peak in interest rates in the UK, following the surprise inflation data that came well below expectations.
Goldman Sachs and Nomura said interest rates in the UK had probably already peaked after inflation unexpectedly fell and investors backed away from expectations for a Bank of England (BOE) rate hike on Thursday.
Goldman economists Ibrahim Quadri and Sven Jari Stehn said that the drop in annual inflation in the country to 6.7 percent in August was a “significant surprise on the downside.”
Nomura’s senior BOE expert George Buckley also issued a note reversing his view. “UK inflation data fell sharply this morning, with weak services sector momentum being the driving force. With economic data having all but weakened over the past month, we have decided to change our view on the BOE decision and now expect no change in rates,” Buckley said in a note on Wednesday. said.
Inflation surprise in the UK
Inflation in the UK slowed down in August, reaching 6.7 percent.
In the previous month, CPI increased by 6.8 percent on an annual basis.
In the country, CPI increased by 0.3 percent on a monthly basis in August.
Core inflation, which excludes energy, food and tobacco products, was announced as 6.2 percent on an annual basis in August. Core inflation was 6.9 percent annually in the previous month.
Food and non-alcoholic beverage prices in the country increased by 13.6 percent on an annual basis in August. The increase in food prices was 14.9 percent in the previous month.
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