UK inflation rate falls to two-and-a-half-year low, Bank of England likely to cut interest rates

According to the Golden Ten report, the British CPI rose by 3.4% year-on-year in February, which was lower than the 4% in January and the lowest level in two and a half years. The figure was lower than the 3.5% median forecast by economists and the Bank of England. Bank of England Governor Bailey said he needs to see further evidence that price pressures will continue to fall back to the 2% target level before easing the benchmark lending rate. Officials are expected to keep interest rates at a 16-year high of 5.25% on Thursday, with financial markets now only fully pricing in a first rate cut in August.