UK Gilts Rise After Inflation Holds at 2.8%, Easing BOE Hike Bets
Updated
Updated · Bloomberg · Jun 17
UK Gilts Rise After Inflation Holds at 2.8%, Easing BOE Hike Bets
3 articles · Updated · Bloomberg · Jun 17
Summary
UK government bonds led gains in European debt after consumer inflation unexpectedly held at 2.8%, prompting traders to scale back Bank of England rate-hike expectations.
The softer policy signal was reinforced by cooling housing costs: rent inflation slowed to 3.3%, while house prices rose 3.8% in April but fell in London.
That mix of steady headline inflation and easing price pressure in key sectors suggests less urgency for the BOE to tighten, a relief for gilt markets and broader UK assets.