Today’s interest rate news brings a shift in market expectations. With UK inflation at 2% for June —slightly higher than anticipated.

The Bank of England is now more likely to maintain the current interest rate of 5.25% during the upcoming meeting on August 1st.

Market predictions for an August rate cut were 50/50, now they’re 64.4% for no change.

The inflation data is still pretty close to the Bank of England’s target and won’t cause any panic. We still expect to see rates come down as we get closer to the end of the year.