U.K. inflation unexpectedly slowed to a three-year low in December, clearing the path to a potential Bank of England interest-rate cut this month. The core inflation rate posted a surprise fall to 1.4 percent. The shock readings will fuel speculation about an imminent rate cut after dovish comments from BOE Governor Mark Carney and other policy makers in recent days. The pound extended declines and was trading down 0.2 percent at US$1.2998 at 9:38 a.m. London time. That’s good news for the purchasing power of consumers, with wages now rising by more 3 percent a year.

Source: The Standard January 15, 2020 11:10 UTC