UK inflation remains steady prior to impact of Iran conflict

Emma Wall, chief investment strategist at Hargreaves Lansdown, said: “As expected by the market, inflation held steady in February.

“Today’s print is not the influential one it usually is for bond and equity pricing.

“Instead, the Iran war, oil prices and where inflation may go from here dominates.

“Gilt yields, having hit highs earlier in the week, last seen in the global financial crisis, have tempered on the hope of resolution.

“We think the conflict is likely to impact next month’s data, but it will be transient, and therefore unlikely to force Bank of England policy.

“We don’t think the next interest rate decision is a hike, rather a pause before returning to the cutting cycle.”