The U.K. reported cooler than expected inflation figures for June, causing the market to reduce its expectations for a 50-bps rate hike to essentially a toss-up.
U.K.’s June CPI 0.1% m/m (expected 0.4%; last 0.7%); 7.9% yr/yr (expected 8.2%; last 8.7%). June Core CPI 0.2% m/m (expected 0.4%; last 0.8%); 6.9% yr/yr (expected 7.1%; last 7.1%). June Input PPI -1.3% m/m (expected -0.3%; last -1.2%) and Output PPI -0.3% m/m, as expected (last -0.6%)