UK Inflation Drops to 3.6%! Markets Now Betting on a December Rate Cut GBP Volatility Ahead

The UK’s Consumer Price Index (CPI) fell to 3.6% in October, down from 3.8% in the previous month signaling a gradual easing in price pressures and reinforcing the narrative that inflation is cooling faster than expected.

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The decline was driven by

- Lower gas and electricity prices

- Softer hotel accommodation costs

- Though food and beverage prices remain elevated in some categories

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🔍 Markets Are Now Pricing a Possible BoE Rate Cut in December

With inflation easing, expectations for a potential Bank of England (BoE) rate cut have increased significantly. If realized, it could trigger short-term volatility in the British pound and pressure UK bond yields.

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📊 Market Impact to Watch

- GBP/USD: Expect heightened volatility as rate-cut speculation intensifies

- Gold: A dovish BoE could support safe-haven demand

- European Equities: May benefit from lower borrowing costs

- Crypto / BTC: Indirect support via improved global liquidity sentiment

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💬 TrendPro Takeaway

Inflation data and interest-rate expectations remain the key drivers for the global market right now. Traders should keep a close eye on GBP pairs and risk assets ahead of the upcoming December BoE meeting.