Bank of England preview – headline inflation lowest in 18 months makes rate hike 50/50

<p>I posted earlier on the Bank of England Monetary Policy Committee decision coming up today, with JP Morgan saying a rate hike is a coin toss:</p><ul><li><a href="https://www.forexlive.com/centralbank/lower-than-expected-uk-cpi-data-bank-of-england-policy-decision-today-now-close-to-5050-20230920/" target="_blank" rel="follow" data-article-link="true">Lower than expected UK CPI data, Bank of England policy decision today now close to 50/50</a></li></ul><p>Bank of Montreal with a similar take:</p><ul><li>UK CPI caught our attention as it shored an unexpected deceleration in headline inflation to the lowest level in 18 months at 6.7% on a yearly basis. </li><li>While this remains far above the pre-pandemic pace, the release was followed by a rethink of the odds the BoE hikes +25 bp.</li><li>The probability of a move is now closer to 50% as investors consider the prudence of a pause.</li></ul><p>Bank of England Governor Bailey </p>

This article was written by Eamonn Sheridan at www.forexlive.com.