MARKET OVERVIEW - Slowing inflation increases the likelihood of a Bank of England interest rate cut.

Foreks - Jochen Stanzl from CMC Markets stated, "The slowing inflation in the UK increases the likelihood of the Bank of England lowering interest rates at its next meeting in May." Stanzl added, "The decrease in inflation is good news for all investors hoping for a rate cut in May."

Markets have adjusted their expectations, now pricing the possibility of a May interest rate cut at 55%, up from 44% just a week ago. This shift signals a growing confidence among investors regarding potential monetary easing in the UK, highlighting the importance of inflation trends for economic forecasts.