world-economy

BOE Rate-Cut Bets Mount on Inflation Misses and Wage Slowdown

The Bank of England faces mounting pressure to cut interest rates following three consecutive inflation surprises to the downside and the weakest private-sector wage growth since 2020. Gilt traders are increasingly confident the central bank will move toward monetary easing as price pressures ease. Other major economies show diverging trends. South Africa's central bank is tightening after inflation overshot forecasts, while Turkey maintains a pause as Middle East tensions keep energy costs elevated. Sri Lanka's central bank also held steady, balancing inflation targets against growth concerns amid geopolitical risks. Market participants are reassessing inflation trajectories across developed and emerging economies, with confidence in central banks' ability to reach targets waning.