UK Inflation Stays At 0.3% – GBP/USD Falls

Inflation in the UK remains stuck at 0.3% y/y, with the monthly figure rising only 0.2% instead of 0.4% expected. Core inflation remained at 1.2% as expected and as in the previous month. The small miss comes on the background of an already vulnerable atmosphere. The BOE will remain in no rush to raise rates.

Cable made a small drop to 1.4260 but bounced back to 1.4274.

Inflation in the UK was expected to tick up just a bit: from 0.3% to 0.4% y/y in March. Core CPI was predicted to rise 1.2% y/y, exactly like in the previous month.

GBP/USD suffered a significant downfall following the Brussels bombings. At least 23 people are dead in multiple explosions in the airport and in metro stations.

Here is the GBP/USD chart. The trend is clearly down in the aftermath of the Brussels bombings: