BoE Outlook Remains Steady Despite Higher UK Inflation

The latest UK inflation data has been released, and it shows that the annual rate has accelerated to 2.9% in July, mainly due to a rise in utility bills reflecting the 13% increase in the OFGEM price cap.

This was broadly as expected by analysts at MUFG, who noted that the good news is that services prices fell from 3.6% to 3.4%, painting a favourable picture of domestically generated inflation.

The Bank of England's (BoE) outlook remains steady, with the MPC likely to remain divided on future monetary policy decisions.