UK: It now looks ‘less’ likely that the BoE will move to increase rates next month, after dovish comments by BoE Mark Carney yesterday triggered a pound sell-off. CPI missed expectation in the UK, coming in 0.2% lower than expected and has taken the pressure off the BoE to increase rates. Carney reiterated the fact that rate hikes would be gradual over the next few years, pointing out that there are ‘other meetings’ this year, hinting that a rate rise next month is now a lot less likely to happen. Disappointing retail sales figures further compounded the case that it is unlikely we will see a hike next month, culminating in two-week lows for GBP/USD following the announcement. Chances of a rate hike next month have now fallen from 86% to 54%. The pound has also lost ground against the euro and has fallen circa 2 cents over the past two days.