T. Rowe Price economist Tomasz Wieladek says the Bank of England's next move is
more likely to be a rate cut than a hike. UK May CPI held at 2.8%, a second
month below expectations; food inflation was notably weaker and, excluding food,
most categories dragged May inflation lower. Wieladek said prolonged restrictive
policy has partly sapped inflation momentum, so policymakers are likely to judge
further hikes unnecessary, especially given the Middle East conflict's shock to
the real economy.
