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Pound to Canadian Dollar Rate Fluctuates despite Upbeat Canadian GDP

British inflation plunged in November to its lowest rate in over two years, prompting investors to pile further into bets that the Bank of England will cut interest rates in the first half of next year. The annual rate of increase in consumer prices dropped to 3.9% from 4.6% in October, pushed down in part by cheaper petrol, for its lowest reading since September 2021, the Office for National Statistics said on Wednesday. The headline Consumer Prices Index (CPI) inflation reading was below all forecasts in a Reuters poll of economists which had pointed to a figure of 4.4%.

British lenders have accelerated price cuts on mortgages as competition intensifies, inflation slows and markets increase bets on future Bank of England (BoE) interest rate cuts. Average rates on fixed-rate mortgage products have fallen by more than 0.5 percentage points since peaking in July, Moneyfacts data shows, even before the BoE starts to reduce the benchmark rate that underpins borrowing costs. The latest inflation data on Wednesday showed price rises in Britain fell faster than expected in October, plunging to 4.6% from 6.7% the prior month, leading to further investor bets on BoE r...

The Bank of England was expected Thursday to keep its interest rate on hold for a second successive meeting, as Britain battles stubbornly high inflation and weak economic growth.Analysts widely expect the economic backdrop to trigger another BoE rate pause Thursday.

The Bank of England will announce on Thursday whether it is halting a run of interest rate hikes that stretches back to December 2021, a day after signs that it had turned a corner in tackling Britain's high inflation problem. Investors piled into bets on the BoE keeping Bank Rate at 5.25% on Wednesday as soon as official data showed a surprise fall in the pace of price growth. Goldman Sachs and other banks ditched their previous calls for one more rate increase and investors put a roughly 50% chance on a pause by the BoE, up from just 20% on Tuesday.