Oct 16 (Reuters) – The UK’s main stock indexes jumped on Wednesday after a key inflation reading showed British inflation fell more than expected, boosting the case for a rate cut by the Bank of England.
The blue-chip FTSE 100 (.FTSE), jumped almost 1% to close at a near four-week high, while the mid-cap FTSE 250 index (.FTMC), climbed 0.9% to touch a two-week closing high.
Precious metal miners (.FTNMX551030), led sectoral gains, rising 3.3%, while the rate-sensitive real estate sector (.FTNMX402020), added 3%.
Consumer price index data showed British inflation fell more than expected to an annual rate of 1.7% in September from 2.2% in August. A Reuters poll had expected CPI to drop to 1.9%.
The pound fell 0.6% to the dollar, another tailwind for British equities.
Investors currently see about a 90% chance the Bank of England will cut rates at its next meeting on Nov. 7.
“Today’s inflation print will reassure members of the Monetary…
