1048 GMT - The Bank of England could restart interest rate cuts in 4Q as U.K. inflation shows signs of easing over the coming months, Peel Hunt's Kallum Pickering says in a note. The latest data shows U.K. annual inflation slowed to 2.8% in April, from 3.3% in March, coming in weaker than the 3.0% forecast by economists in a WSJ poll. Headline inflation is expected to edge higher to around 3.5% on year over the summer due to the impact of the U.S.-Iran conflict, Pickering says. However, second-round effects on inflation are less likely to surface, he says. Peel Hunt expect the BOE to hold rates at 3.75% over the summer before resuming rate cuts in 4Q. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
May 20, 2026 06:48 ET (10:48 GMT)
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