{"id":20778,"date":"2023-09-20T10:55:41","date_gmt":"2023-09-20T10:55:41","guid":{"rendered":"https:\/\/microloannexus.com\/news\/bank-of-england-rate-hike-pause-back-on-the-table-after-inflation-surprise\/"},"modified":"2023-09-20T10:55:41","modified_gmt":"2023-09-20T10:55:41","slug":"bank-of-england-rate-hike-pause-back-on-the-table-after-inflation-surprise","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=20778","title":{"rendered":"Bank of England rate hike pause back on the table after inflation surprise"},"content":{"rendered":"
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LONDON \u2014 The Bank of England’s next monetary policy move is now wide open, following a significant downside surprise in the August inflation print out earlier on Wednesday.<\/p>\n

Prior to the August consumer price index reading, the market was pricing in an 80% chance that the central bank would hike interest rates by 25 basis points on Thursday to 5.5% \u2014 the highest level since December 2007.<\/p>\n

Market pricing swung drastically after the annual headline CPI print fell to 6.7% in August from the 6.8% of July, defying a consensus forecast that it would rise to 7%.<\/p>\n

Shortly after 10 a.m. London time, the probability that the Bank will hold rates steady at 5.25% had risen from 20% to almost 55%, according to LSEG swaps data.<\/p>\n

Notably, core CPI \u2014 which excludes volatile food, energy, alcohol and tobacco prices \u2014 came in at 6.2% in the 12 months to the end of August, down from 6.9% in July. The goods rate rose slightly from 6.1% to 6.3%, but was more than offset by the services rate slowing significantly from 7.4% to 6.8%.<\/p>\n

Following the surprise, Goldman Sachs