nolimitholdemonline| Higher-than-expected inflation in the UK cools prospects for a June interest rate cut

Huitong Finance APP News-May 23nolimitholdemonline, market analyst Eamonn Sheridan wrote that rising inflation in the UK has cooled the prospects of the Bank of England cutting interest rates in June.

UK inflation data are as follows:

UK CPI in April was 2nolimitholdemonline.3%, expected to be 2.1%.

Sterling gained as UK inflation slowed less than expected.

Traders lowered the possibility of the Bank of England cutting interest rates after the UK CPI report was released.

The figure below shows the CPI situation in the UK

ING said that although the inflation data "will not change the rules of the Bank of England's game," a rate cut in June is less likely.

The views of Dutch international analysts are as follows:

The Bank of England will look at these numbers and find that the noise is greater than the signal.

But we believe this does reduce the likelihood of a rate cut at the June meeting, although another set of data will be available before a decision is made. We certainly will not rule out this possibility.

The Bank of England is clearly divided, and since internal committee members rarely appear in the media, it is frankly impossible to know how to vote.

However, today's data supports our long-standing fundamental assumption that the first rate cut will take place in August, providing the Bank of England with additional inflation data and giving it more confidence in underlying trends. Now, we insist on doing this.

Based on the above news, the UK's inflation in April was higher than expected, suppressing the Bank of England's expectation of a rate cut in June. This may give some support to the pound, and investors need to pay attention to this.

Daily chart of GBP/USD At 10:50 Beijing time on May 23, GBP/USD was quoted at 1.2724/25