Potentially Weak U.K. Data Could Reduce BOE Rate Rise Prospects -- Market Talk

Dow Jones05-18 20:33

1233 GMT - If U.K. data due this week show economic weakness, this could reduce the chances of the Bank of England raising interest rates in the coming months, ING's Benjamin Schroeder and Michiel Tukker say in a note. U.K. jobs data are due on Tuesday, U.K. inflation on Wednesday, and U.K. retail sales on Friday. Lower-than-expected wage growth and signs of economic slack "should make some BOE officials more relaxed about the risk of second-round effects from the current energy crisis", they say. Investors fully price in two quarter-point BOE rate rises by the end of 2026 and a 52% probability of a third one, LSEG data show. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

May 18, 2026 08:33 ET (12:33 GMT)

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