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Zero inflation doesn’t boost case for rate cut

For a country that has spent much of its recent history battling high inflation, last week’s data showing that inflation hit zero in February was something of a watershed moment.

However, we don’t think that this bolsters the case for an interest rate cut. Indeed, other MPC members do not seem to share the Committee’s new dove Andy Haldane’s view that interest rates are as likely to fall as to rise.

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