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UK CPI release set for 0600 GMT amid watch on BOE outlook

Traders are pricing about 40 bps of BOE rate hikes by year-end, with the first 25 bps move currently expected in November.

Reported · Written up by our desk · Central Banks

Forexlive says the only major scheduled catalyst in European trading is the UK CPI report for June, due at 0600 GMT.

The outlet expects headline annual inflation to show marginal easing versus May, driven largely by lower petrol and diesel prices at the pump.

For core annual inflation, Forexlive notes analysts see the risks skewed to the downside, with Barclays pointing to transport services and package holidays and hotels as key drivers of the deceleration.

Forexlive adds the report is unlikely to strongly change the Bank of England outlook, as risks remain tied to renewed US-Iran conflict tensions, and current pricing calls for roughly 40 bps of BOE rate hikes by year-end, with the first 25 bps hike expected in November.

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