FTSE 100 marginally positive with interest rates in focus

UK Investor Magazine
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FTSE 100 marginally positive with interest rates in focus

The FTSE 100 followed a familiar trading pattern on Wednesday as the index traded broadly sideways with traders unprepared to make big bets ahead of the Federal Reserve and Bank of England meetings.

London’s leading index was higher by 0.15% at the time of writing.

That said, the minor gains were notable given investors were digesting another disappointing UK economic data point in UK CPI remaining firm at 3.8%.

The FTSE 100 held its own despite the sticky inflation data that suggested the Bank of England would keep rates on hold this week. Investors will also be mindful that the BoE expects inflation to rise again before the end of the year, which is likely to curtail hopes for further UK rate cuts.

“The mix broadly matched expectations and keeps the BoE focused on sticky domestic pressures without adding urgency to cut again this week,” said Daniela Sabin Hathorn, Senior Market Analyst at Capital.com.

“The bank has flagged a possible near-term uptick toward 4% in September before a gradual drift lower, so the reading is seen as confirming the likely outcome of the central bank’s meeting tomorrow, keeping rates unchanged at 4%. The reaction in UK assets has been muted as focus remains on a few busy hours ahead with the likelihood of fresh volatility around the FOMC meeting.”

Although the latest UK CPI reading could have ramifications for UK financial markets through the rest of the year, investor focus today will be on the Federal Reserve’s interest rate decision.

“It’s the big day investors have been anticipating all year – the first likely rate cut from the Federal Reserve in 2025. It’s a question of how much, not if,” said Russ Mould, investment director at AJ Bell.

“The market expects a quarter percentage point cut in recognition of a cooling jobs market. That result could help financial markets to keep trucking along, but a half a percentage point cut could spook investors that the Fed has become more concerned about the economic outlook. Whatever the outcome, it’s feasible that Donald Trump will say the Fed is still not doing enough to lower the cost of borrowing for consumers and businesses.”

FTSE 100 movers

Supermarkets were higher after encouraging Kantar sales data with Marks & Spencer, up 3%, topping the FTSE 100 leaderboard. Sainsbury’s gained 2%.

Barratt Redrow edged 0.7% higher as investors chose to look past soft completions in the previous year to focus on the group’s outlook.

“Barratt Redrow’s full-year results didn’t bring any major surprises as the housebuilder saw aggregate completions fall by nearly 8% to 16,565 new homes,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“Hurdles, such as higher stamp duty, slow changes to planning approvals, and a softer market in London have all weighed on buyer demand. But these numbers were already built into market expectations after a short trading update back in July.”

“The outlook was a key focus, and an expected uplift in buyer activity should see Barratt deliver between 17,200 and 17,800 new homes in the period. This assumes a normal Autumn selling season, though. However, the unusually late timing of this year’s Budget, and the uncertainty it brings around taxation and buyer affordability, means these targets are anything but guaranteed.”

India: Does tariff turmoil matter for markets?  

Aberdeen Investment Trusts
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India: Does tariff turmoil matter for markets?  

The Indian government had been justified in expecting a good outcome from the tariff discussions with the US. President Donald Trump and Prime Minister Narendra Modi appeared to enjoy good relations, while consecutive US administrations in recent years have viewed India as an important ally in the Indo-Pacific region. As a fast-growing emerging economy, there were few competitive clashes between India and the US. However, South Asia’s largest country is now facing some of the highest tariffs in the world – 25% was already in effect at the start of August, and an additional 25% was added on 27 August in response to Indian imports of crude oil from Russia.  

While the high tariffs are unwelcome, the direct impact is expected to be limited. Approximately 80% of the Indian economy is domestically oriented. Overall, Indian goods exports to the US account for just 2% of India’s GDP. Equally, the current tariff regime leaves two high-ticket Indian exports untouched: IT Services, which do not fall under goods-specific imports, and pharmaceutical products, which are exempted for now. There are other sector exemptions as well, such as electronics and semiconductors that are awaiting Section 232 investigations (investigations from the US Commerce Department’s Bureau of Industry and Security). It is estimated that about a quarter of India’s goods exports to the US are currently exempt.  

The real potential risk is in second order effects. If the US economy experiences a slowdown, it may push US companies to reconsider their technology spending which, in turn, would affect their demand for Indian IT services. That could potentially prove to be more disruptive for India. Additionally, the country is not immune to any global supply chain disruptions stemming from these tariffs. It may disrupt the ‘Make in India’ agenda that has relatively worked well to bring international businesses to India. However, for the time being, the US economy appears resilient, and those second-order effects have not materialised.  

Negotiations are ongoing and an agreement to lower the tariffs is still possible. That said, there are challenges around areas such as agriculture: the US wants access to India’s agriculture sector, while the Indian government is fiercely protective because the sector employs nearly 50% of the Indian workforce. In negotiations with other countries, Trump has backed down quickly after securing relatively minor concessions.  

The tariff problem has coincided with a somewhat lacklustre period for the Indian stock market. Although it has seen real strength over the past five years, with an annual growth rate of 19% in local currency terms, the MSCI India is up just 3.6% for the year to date (as at 31 July, in local currency terms). That compares to a gain of over 20% for the MSCI Emerging Markets index and 11.2% for the MSCI World index (in $ terms).  

However, while the temptation may be to conflate the two, tariffs aren’t necessarily the primary cause. The real reasons for the recent weakness are more complex. A lot of India’s recent growth has been driven by public spending on areas such as infrastructure. This is important in creating a more productive economy. However, it has slowed more recently as the Indian government has sought to keep the deficit at manageable levels.  

There has also been some weakness in the Indian consumer economy. Consumption by Indian households has nearly trebled to $2.07 trillion over the past decade. It remains a crucial engine of growth. However, the abundance of labour has kept wages lower, which has slowed consumption growth. Inflation has also been a factor in consumer confidence. In the longer-term, it is hoped that urbanisation, and a move away from agricultural jobs, will reverse the tide. The Government is also about to reform the country’s Goods and Services Tax (GST). Introduced in 2017, it has long been seen as unwieldy. The government is planning a significant simplification, aimed at reducing inflation and encouraging consumption. 

Another problem has been that parts of the Indian market simply got too expensive. The Indian market has long been more expensive than its emerging market peers, a reflection of the country’s strong corporate governance and faster growth. However, certain parts of the market had become frothy, particularly among small and mid-cap companies.   

However, none of these problems are terminal. With inflation now under control, the Reserve Bank of India has steadily injected liquidity into the market since December 2024 and began a rate-cutting cycle in February. It has reduced the headline interest rate by 1% so far this year. On the fiscal side, the government announced a consumer-focused budget for 2026, aimed at boosting middle-income consumption demand.  

There are other initiatives. The government is also emphasising public-private partnerships for infrastructure projects, with the aim of galvanising private capital spending. The ‘Make in India’ manufacturing initiative continues, with increased funding for production-linked incentive schemes encouraging multinationals to establish production bases in India, particularly in high-demand sectors such as smartphone manufacturing.  

These cap a decade of painful and difficult reforms that have left the Indian economy in a far stronger position. India is now a compelling place to do business. Economic growth is still comfortably above 6%, higher than the majority of its emerging market peers, and any deterioration is already factored into market pricing.  

In the meantime, with the froth knocked off valuations, there is an opportunity to buy into long-term, high quality growth companies at a better price. We are finding more compelling value in the small and mid-cap market, for example. The banking sector, infrastructure-related companies, and domestic consumption-focused businesses all offer opportunities in this dynamic market. Nevertheless, there are still pockets of over-valuation, which – in our view – support an active approach to the Indian market. 

The tariff problems may yet be resolved, with negotiations ongoing. Any resolution would contribute to better sentiment towards Indian equities. However, the real improvement may come as the economy starts to feel the benefits from the recent government initiatives to improve the economy.  

India offers a diverse investment universe and is not heavily concentrated in any single sector. It remains home to a wealth of well-run companies with robust balance sheets, stable and predictable cashflows, healthy corporate earnings growth, and competent management teams. Corporate governance continues to improve. Its temporary troubles do not derail the long-term story for India.  

Important information  

Risk factors you should consider prior to investing: 

  • The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested. 
  • Past performance is not a guide to future results. 
  • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. 
  • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company’s assets will result in a magnified movement in the NAV. 
  • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company’s shares. 
  • The Company may charge expenses to capital which may erode the capital value of the investment. 
  • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. 
  • There is no guarantee that the market price of the Company’s shares will fully reflect their underlying Net Asset Value. 
  • As with all stock exchange investments the value of the Company’s shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. 
  • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. 
  • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. 

Other important information: 

The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction. Any data contained herein which is attributed to a third party (“Third Party Data”) is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use with Aberdeen. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Aberdeen, or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates. 

The abrdn New India Investment Trust plc Key Information Document can be obtained here. 

Issued by abrdn Fund Managers Limited, registered in England and Wales (740118) at 280 Bishopsgate, London EC2M 4AG. The company is authorised and regulated by the Financial Conduct Authority in the UK. 

Find out more at aberdeeninvestments.com/anii or by registering for updates. You can also follow us on X, Facebook and LinkedIn. 

UK inflation holds at 3.8% as food prices rise

UK Investor Magazine
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UK inflation holds at 3.8% as food prices rise

UK CPI inflation held at 3.8% in August as food prices continued to rise, piling pressure on consumers.

The August read of 3.8% was exactly the same as in July, suggesting inflationary pressures had eased over the summer, although it’s difficult to call this good news for the economy.

Forecasts point to higher inflation in the coming months, adding to the gloomy picture around the UK economy.

“The UK headline inflation rate stood still in August, but prices are still rising and inflation remains at its highest level since the start of 2024. With forecasts suggesting inflation could rise even further in the short-term and hit 4% going into the autumn, the cost-of-living strain on household finances will persist in the months ahead. In short, already sticky inflation is likely to get stickier,” said Scott Gardner, investment strategist at Nutmeg.

Frustratingly, stubbornly higher inflation is an issue localised in the UK, with other major economies seeing inflation fall enough for central banks to reduce interest rates meaningfully. The US, for example, has a CPI inflation rate of 2.9%.

“The problem is that the current inflationary spike seems to be a uniquely British problem. UK inflation is now appreciably higher than rates we see in European peers or the US, and a lot of that is probably down to own goals on the government’s part,” explained Nicholas Hyett, Investment Manager, Wealth Club.

Oil price firms on Russian oil facility attack and economic growth hopes

UK Investor Magazine
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Oil price firms on Russian oil facility attack and economic growth hopes

Oil prices have found support after Ukrainian attacks on Russian oil facilities raised the prospect of oil supply disruption. Hopes of increased growth after the Fed cuts rates are also fuelling oil bulls.

Brent oil was trading at $68.29 at the time of writing.

The latest strike on Russian oil facilities is unlikely to cause major disruption in isolation; rather, if this turns out to be a tactic employed by Ukraine on an ongoing basis, the impact on Russian output could impact global oil supply.

“In recent days, crude oil prices have seen a sharp increase, rising more than one dollar per barrel, following a series of Ukrainian attacks targeting ports and refineries in Russia,” said Antonio Di Giacomo, Financial Markets Analyst for LATAM at XS.com.

“These actions could reduce the global oil supply if they continue to damage refining capacity, the state-owned company Transneft warned. Analysts note that a significant amount of capacity has already been lost, about 300,000 barrels per day, which could translate into sustained upward pressure on international markets.

Like all financial markets, the Federal Reserve is also providing support for oil as traders factor in the potential for a growth boost should the Fed cut rates during the rest of this year.

“Another factor capturing investors’ attention is the upcoming Federal Reserve decision on interest rates. If the Fed decides to lower rates or adopt a more accommodative stance, it could stimulate economic growth, which in turn would boost fuel demand,” Di Giacomo said.

Agentic AI voice platform Clarity secures $12m funding

UK Investor Magazine
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Agentic AI voice platform Clarity secures $12m funding

Clarity, an AI-powered customer experience platform specialising in highly regulated industries, has secured $12 million in new funding to accelerate its expansion across global markets.

The funding round was led by Prosus Ventures, with participation from STV AI Fund , Sukna Ventures, Wamda Capital, Neo, Oraseya Capital, Phaze Ventures, Propeller, Tech Invest Com, and angel investors from OpenAI and Google.

The company, which recently rebranded from Anecdote to Clarity, reported impressive financial performance with a 5.4× year-on-year revenue surge and average monthly growth exceeding 20% in 2025.

“Rebranding to Clarity is about exactly that, bringing more clarity to customer experience. We want AI to be simple, useful, and safe. A lot of tools in the market cut corners, and that doesn’t work in industries where mistakes aren’t an option,” said Abed Kasaji, Co-founder & CEO, Clarity.

“From day one we built Clarity to be compliant, secure, and easy to roll out. This new funding lets us keep improving the tech and building the right partnerships so companies can finally modernise customer operations with confidence.”

The startup has secured partnerships with major companies, including OpenAI, Booking.com, Grubhub, Careem, and STC, alongside contracts in the banking and government sectors.

Clarity was founded by CEO Abed Kasaji and CTO Pavel Kochetkov, both part of the “Careem Mafia” – a network of over 100 former Careem employees who launched their own ventures following Uber’s 2020 acquisition of the Middle Eastern ride-hailing company. Similar to the renowned PayPal Mafia, these entrepreneurs have helped fuel startup ecosystems across more than 20 countries globally.

Clarity differentiates itself in the crowded AI market by focusing on regulatory compliance. The platform offers fraud detection capabilities that flag 96% of fraud reports within seconds, early escalation of high-risk interactions, and FCA-compliant tagging and pattern detection across reviews, surveys, and social media. For sensitive legal, political, or financial cases, the system maintains human-in-the-loop review processes.

High-conviction UK equity selections, deep value investing, and Barratt Redrow with Aurora UK Alpha

UK Investor Magazine
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High-conviction UK equity selections, deep value investing, and Barratt Redrow with Aurora UK Alpha

The UK Investor Magazine was thrilled to be joined by Kartik Kumar, Portfolio Manager of Aurora UK Alpha, to discuss the investment trust and its distinctive approach to UK equity investing.

Find out more about Aurora UK Alpha here.

In this episode, listeners will learn how Aurora applies time-tested investment principles from legends such as Warren Buffett and Charlie Munger to identify undervalued opportunities in the UK market.

The discussion explores why Aurora sees compelling value in UK-listed companies, particularly those with domestic-focused business models that many investors are overlooking. You’ll learn about their rigorous research methodology for evaluating consumer-facing businesses and gain insights into their concentrated portfolio approach.

Hear detailed case studies of key holdings, including why Barratt Redrow stands out in the competitive homebuilding sector and the strategic thinking behind Phoenix’s unusual takeover of funeral services provider Dignity. Kartik also discusses their patient investment philosophy – including their “propensity to do nothing” – and whether market volatility in 2025 prompted any new investment actions.

The conversation concludes with their compelling case for why investors should consider Aurora UK Alpha in their portfolios, plus book recommendations for anyone interested in deepening their investment knowledge.

AIM moves: Focusrite improves revenues and Manolete Partners expects significant second half weighting

Andrew Hore
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AIM moves: Focusrite improves revenues and Manolete Partners expects significant second half weighting

Digital marketing services provider Silver Bullet Data Services (LON: SBDS) has appointed Dara Nasr as a non-executive director. He was previously a vice president at We Transfer. Martyn Rattle and AnnaMaria Khan-Rubalcaba have stepped down from the board. The share price increased 38.7% to 2.15p.

Audio products supplier Focusrite (LON: TUNE) performed strongly in the six months to August 2025. Revenues improved from £81.6m to £87m during the period. This is despite negative currency movements. New product launches helped and offset lower spending on audio reproduction equipment. Gross margin is improving despite tariffs. The 12-month revenues rose from £158.5m to £168m. EBITDA is in line with expectations of £25.2m despite the better revenues. Net debt was £11m at the end of August 2025. The new financial year end is February. The share price rebounded 14.6% to 188.5p.

Video games publisher tinyBuild (LON: TBLD) reported flat interim revenues of $17m, which nearly all came from back catalogue. There was a swing back into profit and positive cash generation. Net cash was $4.6m at the end of June 2025. A swing from a loss of $4.1m to a pre-tax profit of $2.8m is forecast for the full year.  The share price recovered 12.8% to 11p.

Advanced imaging and biodetection technology developer Kromek (LON: KMK) moved into profit in the year to April 2025 thanks to revenues from its collaboration agreement with Siemens. A loss of £3.2m was turned into a pre-tax profit of £4.1m, helped by the high margin nature of the Siemens income. The Siemens income will be lower this year, but the rest of the business should grow. Kromek will remain profitable but gross margin will be lower. Regular orders from Siemens are expected in 2027. Net cash is £1.2m and there is no requirement for any share issues, because cash should build from this point. The share price improved 8.25% to 5.25p.

FALLERS

Litigation finance business Manolete Partners (LON: MANO) has warned that its figures will be significantly second half weighted. Fewer large cases have been won in recent weeks, but there are some due in the coming weeks. Full year expectations have been maintained, although Canaccord Genuity will be reviewing the figures at the time of the interims. The loan facility of £12.5m is fully drawn. The share price declined 15.2% to 97.5p.

Fiinu (LON: BANK) has entered an exclusive strategic partnership with Manx Financial (LON: MFG) subsidiary Conister Trust to launch Plugin Overdraft in the UK. It will be launched initially with one million plus retail customers and then rolled out to other customers. It will be branded “Conister Bank Plugin Overdraft®, powered by Fiinu“. There is a profit-sharing agreement. Manx Financial shares rose 2.82% to 36.5p. The Fiinu share price slipped 12.9% to 13.5p, which is below the recent placing price of 15p.  

Star Energy (LON: STAR) generated cash from operations in the first half of 2025 with oil and gas production of 1.9mboe/day despite unplanned outages. The lower oil price meant revenues fell from £23.2m to £18.3m, while EBITDA was down from £5.5m to £4.5m, after £1m of investment in geothermal. The cash generated is going into growing the geothermal business in the UK and it has licences in Croatia. Zeus has estimated a total risked NAV of 50p/share. The share price fell 7.69% to 6p.

FTSE 100 dips ahead of Fed rate decision

UK Investor Magazine
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FTSE 100 dips ahead of Fed rate decision

The FTSE 100 dipped slightly on Tuesday as investors took cash off the table ahead of the Federal Reserve’s interest rate decision.

London’s leading index was down 0.2% at the time of writing despite another fresh record high for US stocks.

The S&P 500 closed at 6,615 and is now 12% higher year-to-date – almost identical to the gains the FTSE 100 has recorded over the same period.

US tech stocks drove the S&P 500 to fresh record highs overnight, with Alphabet and Tesla storming higher. Tesla shares jumped after Elon Musk bought $1bn of Tesla stock in a move that will go a long way to quelling concerns about his dedication to the company.

Perhaps the softer moves in UK stocks were related to slightly negative sentiment around the UK jobs market, which showed more signs of deterioration in June.

“Signs of cooling are emerging in the UK labour market, but wage growth remains stubbornly high, still well above levels consistent with the Bank of England’s inflation target,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“The slight dip in pay growth and falling payrolls suggest momentum is easing, yet services inflation remains sticky, keeping rate cut hopes firmly on ice. With UK rates likely on hold as we move into 2026, markets may need to recalibrate expectations around the timing and pace of policy easing.”

The BoE’s commentary around its rate decision this week will be pored over for a signal they may act to stem the slowing jobs market with a rate cut. However, as Britzman says, this seems unlikely with inflation remaining at elevated levels.

Another fresh record high for gold fuelled Fresnillo’s extraordinary rally with a 3% gain. The precious metals miner is now up 267% in 2025 alone.

Gold bulls are relishing the prospect of a more accommodative Federal Reserve, and the yellow metal was trading near $3,700 at the time of writing.

“The market has pushed gold to all-time highs for a reason, and while the exact reason could fall on any one of many macro debates and concerns being posed by market players, the fact that gold is uncorrelated from the S&P500 and US Treasuries and is a portfolio hedge that is working well makes the investment case highly attractive,” said Chris Weston Head of Research at Pepperstone.

Haleon was the FTSE 100’s top faller with a loss of 2.8%. Easyjet was not far behind with a drop of 2.6%.

MJ Gleeson profits hit by extended site durations

UK Investor Magazine
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MJ Gleeson profits hit by extended site durations

It’s tough out there for housebuilders, and MJ Gleeson has demonstrated that rising revenues and completions aren’t enough to ensure sustainable profit growth.

MJ Gleeson reported annual results broadly in line with revised expectations, with housing completions rising to 1,793 homes sold compared to 1,772 the previous year.

However, profits declined as operating profit at the homes division fell 26% to £22.3m despite a 6% revenue increase to £348.2m.

The housebuilder’s gross profit margin on homes sold dropped to 20.7% from 24.1% the previous year. Group profit before tax fell 17% to £20.5m, though total revenue increased 6% to £365.8m. The group pointed to rising costs as olders sites incurred higher costs and extended site life increased overheads.

Gleeson Land performed strongly, with operating profit surging 218% to £7.0m from £2.2m. The division completed seven land transactions versus four previously.

There are some reasons to be positive. Net reservation rates have improved 8% in recent weeks to 0.54 per site per week.

The firm maintains ambitious plans to sell 3,000 homes annually, which could triple group profitability. These ambitions, coupled with a dividend maintained at 11p for the full year, will have helped provide some support for shares on Tuesday.

“This year has been challenging for Gleeson, and despite selling more homes relative to FY2024, there have been factors which stalled our momentum. We have taken the actions necessary to benefit the business through FY2026 and ensure the delivery of our strategic objectives,” said Graham Prothero, CEO of MJ Gleeson.

“Positively, Gleeson Homes significantly strengthened its forward order book in the year. Market demand has been steady, and we have maintained a robust sales rate, reflected in our net open market reservations rate, up 28% in the second half against the same period last year. Selling prices, however, remained constrained, with incentives continuing at an elevated level, restricting material margin improvement.”

UK jobs market continues to deteriorate

UK Investor Magazine
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UK jobs market continues to deteriorate

The UK jobs market has shown additional signs of deterioration, with wage growth slowing and the number of vacancies for open jobs falling.

The unemployment rate remained at 4.7% in June – the highest level since 2021. There were 6,000 fewer people on UK payrolls and 10,000 fewer vacancies.

This all points to a slowing UK economy that demands action from the government and the central bank. Whether they actually take any action is another thing altogether.

The government has shown it is economically illiterate, and the Bank of England will likely be paralysed by fears of inflation returning to cut rates significantly this year.

Unfortunately, this toxic cocktail will culminate in further job losses and a slower UK economy.

“The latest UK jobs data reinforces a tough backdrop: the labour market is softening, but inflation remains too high for the Bank of England to pivot dovish. That’s a painful combination, households face slower wage growth just as higher food and energy bills bite, while firms cut back on hiring amid rising taxes,” said Lale Akoner, global market analyst at eToro.

“It’s hard to see a near-term catalyst for stronger domestic demand, and the November budget could tighten conditions further.

Akoner provided insight into where investors may find refuge as the UK’s economy grinds to a halt under the weight of higher taxes and a directionless government.

“For investors, that points to caution around UK consumer-facing stocks, which may struggle under the squeeze. Instead, opportunities may lie in global UK multinationals with foreign revenue streams that can offset domestic weakness, or in defensive sectors with stable cash flows,” Akoner suggested.

“Until inflation convincingly cools, the BOE is stuck holding rates high, keeping pressure on growth. The trade-off between weak employment and sticky prices underlines why UK assets could remain volatile.”

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