UK inflation unexpectedly holds steady at 3.8% in September
Figure prompts traders to increase bets on Bank of England interest rate cut this year and sparks gilt rally
Figure prompts traders to increase bets on Bank of England interest rate cut this year and sparks gilt rally

Figure paves way for expected Federal Reserve rate cut next week

Assessment from MPC adds to sell-off in gilts and prompts traders to increase bets on higher borrowing costs

Bank of England is seeking evidence that recent price rises are under control

Data increases odds of a BoE rate reduction as soon as next month

Figure comes as Middle East war has triggered a surge in energy prices

Investors see UK economy as one of the most exposed to an inflation shock