UK Inflation Gives Bank of England More Time, Deutsche Bank Says

According to Jin10, Deutsche Bank analyst Sanjay Raja said June inflation data will give Bank of England policymakers more time. The inflation rate was 2.6%, down from 2.8% in May, and current overall CPI inflation was 0.4 percentage points below the Bank of England's forecast in its April Monetary Policy Report. Raja said rebounds in commodity prices such as energy and fertilizer will keep inflation forecasts elevated, with the rate likely to rise further from current levels and approach 3.5% in the fourth quarter. He said this will continue to delay any rate-cut outlook for now while allowing the Monetary Policy Committee to keep its slightly restrictive bias.