Hope that inflation has peaked took deeper hold in the City today, as bond and mortgage markets continued to improve and there were fresh signs of lower food prices ahead.
As the mood brightened, stock markets styayed on the up – with retailers and housebuilders in demand – and the pound headed further away from the $1.30 mark. Traders also continued to place bets that the Bank of England’s interest rate hikes would now not take UK base rates over 6%.
