Year on year RPI inflation rose over the quarter to 3.4% (from 2.7% at the beginning of the quarter) and the CPI index rose to 2.3% (from 1.7% at the beginning of the quarter).
Market expectations for interest rate cuts in 2025 have substantially reduced. The market is now expecting only two rate cuts in the coming year, from the current 4.75% level to 4.25%. Spreads versus swaps for non-financial corporate bonds marginally decreased over the quarter, moving 5 to 8 bps lower across the credit rating spectrum.
