Market Outlook: HSBC Expects BoE to Keep Rates Steady in December

HSBC economist Chris Hare stated that the inflation in the UK for October indicates a decline in the recently slowing inflation trend. He noted that the monthly core inflation rate of 0.4% for October is 0.25 points above the 2010-19 average and has been below the average in recent months. Hare mentioned, "More generally, in the coming months, we will be looking for clear signs that service inflation will continue to decline instead of stabilizing at its still high levels." He added that this suggests the Bank of England will keep interest rates steady in December before implementing a 25 basis point cut in February and May next year.