Posted By Global Banking and Finance Review
Posted on January 15, 2025
By Shashwat Chauhan
(Reuters) – British equities jumped on Wednesday, with the economically-sensitive midcap index rising more than 1%, after data showed British inflation unexpectedly slowed in December and core measures of price growth fell more sharply.
The blue-chip FTSE 100 added 0.7% as of 0842 GMT, outpacing European peers, while the FTSE 250 midcap index jumped 1.5%.
The annual rate of inflation eased to 2.5% in December from 2.6% in November, while core inflation, which excludes energy, food, alcohol and tobacco prices, fell to 3.2% from 3.5%.
“The Bank of England will likely feel emboldened to continue its easing cycle in February. And rate cut expectations further out should ease on the back of today’s data,” said Sanjay Raja, Deutsche Bank’s chief UK economist.
Traders currently see a more than 82% of the BoE cutting interest rates in February, and about…
