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Sterling at one-week lows as inflation below forecasts

reuters.com
Sterling at one-week lows as inflation below forecasts

LONDON (Reuters) - Sterling slipped to a one-week low on Wednesday as inflation data failed to bolster chances of an interest rate increase in August with markets wary about headlines on Brexit negotiations. Consumer price inflation held at an annual rate of 2.4 percent in May, its joint-lowest since March 2017, the Office for National Statistics said on Wednesday, below economists’ forecasts in a Reuters poll of a small rise to 2.5 percent. The data did little to shake market expectations of an interest rate hike over the course of the year. Money markets currently price in a 43 percent chance of a 25 basis point hike in August and barely one rate hike by end-2018. The British currency fell