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British households' inflation outlook eases pressure on BoE
Britons' inflation expectations have decreased significantly, from 4.7% in May to 3.8% in June, following a decline in oil prices. This reduces the risk of the economy falling into a vicious cycle and eases pressure on the Bank of England to raise interest rates. Markets also anticipate that monetary policy will only tighten slightly—by about 22 basis points—by the end of the year.
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