Inflation rise unlikely to stop US interest rate cut

An increase of 0.3% in US core inflation in May is not expected to prevent the Federal Open Market Committee from cutting interest again this month. The monthly figure was met with some selling in the bond market on disappointment that it was not even lower, but the annual increase of just 1.6%, well below the Fed's 2% target rate, suggested the figures present no barrier to easing. The 90-day bank bills market has priced for a rate cut of 25-50 basis points following the Fed's two-day meeting, set down for 24-25 June. If delivered, it would be the first rate cut since November last y...