Deutsche Bank analyst Sanjay Raja said June inflation gives the Bank of England
more time. Headline CPI fell to 2.6% in June from 2.8% in May, leaving overall
CPI 0.4 percentage points below the Bank of England's April Monetary Policy
Report forecast. A rebound in commodity prices, notably energy and fertiliser,
should keep inflation forecasts elevated; inflation is expected to rise from
current levels and could approach 3.5% in Q4. Deutsche Bank said this will
likely keep any rate‑cut prospects temporarily on hold while allowing the MPC to
retain a slight tightening bias.