Interest rate cuts should still be “a way off” in the UK, one Bank of England ratesetter has said, as she warned that the country was struggling with more “inflation persistance” than in other economies.
Writing in the Financial Times, Megan Greene said: “The risk of inflation persistence is diminishing as these indicators come down in line with the MPC’s forecast.
“But they remain higher than in other advanced economies, particularly the US. Momentum in the markets has been towards pricing in later rate cuts by the Fed as economic growth remains robust. In my view, rate cuts in the UK should still be a way off as well.
5 things to start your day
1) Thames Water bondholder warns creditor losses will deter investment in UK | Nationalisation threatens to discourage financing of Britain’s ageing infrastructure
2) Slash benefits to get more men into work, IMF urges | Mel Stride vows to ‘do whatever it takes’ as Fund calls for radical action on worklessness
3) KPMG hit with record fine for exam cheating | Big Four accounting firm ordered to pay $25m for scandal involving hundreds of employees
4) Post-Brexit boost for the City as EU rules on stock market research scrapped | FCA consults on plans to remove laws underpinning £9 trillion industry
5) Post-Brexit checks on food to cost consumers £2bn, report claims | New rules are equivalent to a 10pc tariff, warns Allianz
What happened overnight
On Wall Street, the Dow Jones Industrial Average fell 1.09pc, to 38,461.51. The S&P 500 dropped 0.95pc, to 5,160.64, and the Nasdaq Composite lost 0.84pc, to close at 16,170.36.
The yield on benchmark US 10-year Treasury bonds rose to 4.546pc, from 4.366pc late on Tuesday.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7pc and the Nikkei dropped 0.8pc.
China’s blue chips eased 0.4pc and Hong Kong’s Hang Seng index fell 1.1pc, after data showed consumer prices in the world’s second-largest economy rose by a muted 0.1pc in March, missing expectations.