"These [inflation] figures give the Monetary Policy Committee slightly more leeway to undertake more QE to cushion the U.K. economy from the euro-zone turmoil"
- Vicky Redwood, an economist at Capital Economics Ltd.
Inflation in the U.K. eased by more than forecast in April, giving the Bank of England slightly more room for action. Year-on-year inflation rate fell to 3 per cent in April from 3.5 per cent in March, said the Office for National Statistics on Tuesday.
"These figures give the Monetary Policy Committee slightly more leeway to undertake more QE to cushion the U.K. economy from the euro-zone turmoil," said Vicky Redwood, an economist at Capital Economics Ltd. in London.
"We expect core price pressures to ease further in response to contracting output and weak pay growth."
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