UK inflation expectations fall in latest poll

<p>YouGov is out with a UK inflation expectations poll:</p><ul><li>1-year ahead inflation expectations 4.3% vs 5.0% in June</li><li>5-10 year ahead inflation expectations 3.2% vs 3.3% in June</li></ul><p>These are moving in the right direction but a hike is still coming tomorrow with the market pricing in a 62% chance its 25 bps and a 38% chance it's 50 bps. It will be an interesting one but the terminal top is now 5.76 in the rates market, well below the 6-6.5% that some were fearing last month.</p><p>Cable is down 71 pips to 1.2706 today.</p>

This article was written by Adam Button at www.forexlive.com.