6% Services Inflation Vexes UK As Sunak Looks For ‘Feel-Good’ Rate Cuts
Sticky inflation's not just a US problem.
Services sector price growth in the UK remained irksome in March, ONS data released on Wednesday showed.
At 6%, services inflation ran above the BoE's last projection, frustrating calls for as many as three rate cuts in 2024. Those wagers were trimmed further on Wednesday.
Headline and core price growth ran 3.2% and 4.2%, respectively, in March, both ahead of estimates.
You can't cut rates aggressively with inflation running triple target for servi
Suppose the next 6 months is i) continued solid data from US economy, ii) mixed but not worsening data from Eur, iii) sticky services inflation in US and Eur, iv) Fed and BoE hold, ECB cuts 1x, v) market expectations drift toward Fed no-cut in 2024, BoE cut late in year, vi) 10 year climbs to 5%, vii) geopoltical no easing-no escalation.
How do you want to be positioned?
European stocks? Though that is dependent on #vii playing out.
commodities