Posted By Global Banking and Finance Review
Posted on January 15, 2025
By Shashwat Chauhan
(Reuters) -British stock markets rallied on Wednesday, with midcaps notching their best day in a month, as tame inflation reports from the UK and the U.S. fuelled expectations of more interest rate cuts this year.
The blue-chip FTSE 100 closed up 1.2%, while the FTSE 250 midcap index jumped 2.8% to log its biggest percentage gain since Dec. 15.
UK stocks were already higher after data showed British inflation slowed unexpectedly last month and core measures of price growth — tracked by the Bank of England (BoE) — fell more sharply.
Investors increased their bets on the BoE cutting rates, putting an 84% chance on a first quarter-point reduction on Feb. 6, the date of its next scheduled monetary policy announcement.
“The Bank of England will likely feel emboldened to continue its easing cycle in February. And rate cut expectations further out…
