IoD press release  December rate cut more likely after further fall in inflation

“Inflation has continued to inch downwards in today’s data, increasing the likelihood that December will see a welcome rate cut. Goods, services and core inflation all eased, although food inflation did pick up again to 4.9%.

“We’re drawing ever closer to a Budget which is expected to dampen already subdued demand further via another increase in the tax burden. While uncertainty will hopefully diminish, that is unlikely to fully cancel out the drag on investment and hiring from further tax rises. There’s one more inflation release before the next interest rate decision, but with a weaker near-term outlook in prospect, it seems more certain that the Monetary Policy Committee will on balance cut rates in their December meeting.”