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Rate cut on horizon as UK inflation falls to fresh low

Jan 16, 2020 - City A.M.
Board and Executive Moves

STERLING fell yesterday after data showed UK inflation unexpectedly slipped to a three-year low during December, ramping up expectations that the Bank of England (BoE) will cut interest rates later this month.

The consumer price index (CPI) rose 1.3 per cent last month compared to a year earlier - the weakest level since November 2016, according to official data released yesterday.

The weak CPI reading means inflation slipped further away from the Bank's official two per cent target,...