UK inflation falls sharply to 3% in January
Data increases odds of a BoE rate reduction as soon as next month
Data increases odds of a BoE rate reduction as soon as next month

Data release comes after Fed held interest rates last month

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

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

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

ECB expected to hold interest rates at meeting on Thursday