Will delays to rate cuts hit capital values?

Inflation has been stickier than we had expected and we have therefore pushed back when we think the Bank will start cutting interest rates. That may put a little upward pressure on property yields over the next couple of months. But we still think interest rates will fall back by more than markets expect and, alongside decent rental growth, that means capital values at the all-property level have now bottomed-out and will end the year up by around 2%.