Odds of Bank of England interest rate cut strengthen as inflation falls to 2.8%

Expectations that the Bank of England will cut interest rates at its next monetary policy meeting in May are finely balanced. Photograph: Maureen McLean/Shutterstock

The odds of the Bank of England cutting interest rates in May have been strengthened after inflation cooled by more than forecast last month.

In a boost for Rachel Reeves on the day of her spring statement, the Office for National Statistics (ONS) said inflation as measured by the consumer prices index eased to 2.8% in February from 3% in January.