Finance · 22 October 2025
UK Inflation Steady at 3.8%, Boosts London Stocks and Rate Cut Expectations
London stocks rose for the third consecutive day as UK inflation held steady at 3.8% in September, below the Bank of England’s 4% forecast. This unexpected stability raised expectations for an interest rate cut as early as December, with traders pricing in a 75% chance. Barclays led gains with a 4.2% surge following a £500 million share buyback announcement. The inflation data provides relief for Chancellor Rachel Reeves ahead of her November budget.
Reported by Reuters · How we write briefs