The UK market experienced a relatively quiet week last week as the FTSE 100 closed approximately 1% higher at 7,339. Inflation and interest rates continue to be the main influencing factors at present with the market continuing to forecast UK interest rates peaking at 6%. The Times reported on the most recent Office for National Statistics (“ONS”) inflation data published last week which suggested that inflation may be easing quicker than initially expected. The ONS calculations showed that core inflation fell to 6.8% in July from 6.9% in June and from a peak of 7.3% in May, compared with original data for July showing that core inflation had held steady at 6.9%. This update is a welcome development; however, services inflation is at multi-decade highs of 7.4% and wages continue to be at record levels, meaning that the updated ONS figures are unlikely to shift near term market or Bank of England (“BOE”) expectations. A Reuters poll of economists also showed that 61 of the 62 economists surveyed expect a 0.25% rate hike in September with a narrow majority thinking that this will be the end of the rate tightening cycle. Out of the 62 economists surveyed, 27 still said that rates could peak at 5.75% and two said 6%, with underlying inflation remaining too high and elevated wage growth continuing to be the most challenging aspect of BOE policy making... Stocks featured: BAE Systems, CRH and JD Sports Fashion To find out more about the investment management services offered by Walker Crips, please visit our website: https://www.walkercrips.co.uk/ This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Hosted on Acast. See acast.com/privacy for more information.