High inflation ‘not sufficient to scupper interest rate cut’

JUNE inflation data showing a 3.4% year-on-year rise in prices will not put Bank of England officials off voting for an interest rate cut in August, leading economists have said.

- By Mauricio Alencar

A Bloomberg poll of City analysts predicted inflation will stay above the Bank’s 2% target as price growth is expected to remain at 3.4% for the third month running.

But economists have said the Bank is likely to look past sticky inflation and instead move ahead with an interest rate cut in August.