BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
ECB Rate Outlook: Ceasefire Eases Pressure but Hikes Still Expected in 2026 
Fed’s Goolsbee Warns Inflation Remains Elevated, Signals Caution on Rate Cuts 
Eurozone Recession Risks Rise as Middle East Conflict Threatens Growth, ECB Official Warns 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
Japan Inflation Expectations Rise as BOJ Rate Hike Timing Faces Uncertainty 
Today, some of the measures of inflation in UK improved but levels of inflation that can be considered as normal, still very far away.
Given such, though Bank of England policymakers said they would consider hiking rates at turn of the year, it seems it is quite difficult to digest the idea given UK's zero inflation and Bank of England's rate standing at 0.5%.
Key highlights
- Producer price index (output) dropped -1.8% in August y/y. Producer price index dropped by -0.4% m/m.
- House prices grew in July, however at slower pace than expected, grew 5.2% in August from a year ago. Much lower than analysts' expectations of 6.2 % growth.
- Retail price index up sharply, at +0.05% m/m and grew 1.1% y/y in August.
- Consumer price index stayed at 0% m/m but Core CPI remained at 1% from a year ago, compared to prior 0.8%.
Pound is sharply down today, failing to break above key 1.55 resistance area.
