Dip in UK inflation offers respite for Reeves and paves way for interest rate cut

Rachel Reeves was being written off in some headlines as a “lame duck” chancellor earlier this week, after a savage bond sell-off put her at risk of breaking her fiscal rules. The shadow chancellor, Mel Stride, had even compared Reeves’s situation – somewhat bafflingly – to Hamlet, Shakespeare’s tragic prince, while the Tory leader, Kemi Badenoch, claimed Labour had chosen a chancellor who wasn’t “qualified to do the job”. Yet what financial markets take away, they can restore. After Wednesday morning when UK inflation come in at a lower-than-expected 2.5%, most of the increase in bond yields of recent days

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