Odds of an increase in UK interest rates on Thursday falls below 50%, after inflation rate dropped unexpectedly in August to an 18-month low
The pound has dropped to its lowest level in almost four months, following August’s welcome drop in inflation.
Sterling has shed half a cent against the US dollar to hit $1.2335, the lowest since late May.
British inflation unexpectedly eased from 6.8% to 6.7% in August, and core inflation fell from 6.9% to 6.2%.
The surprise fall in UK inflation triggered a kneejerk selloff in sterling, as today’s data cements the expectation that the Bank of England’s (BoE) next rate hike could also be its last.
