Global Market: UK inflation drops to 2.6%; markets eye Bank of England's next rate decision

UK inflation eased to 2.6% in June, below the 2.7% expected by economists, driven by moderating energy prices following a ceasefire that reduced the Iran conflict's impact on global energy markets. Despite remaining above the Bank of England's 2% target, the data reinforces expectations that the BoE will hold its benchmark rate at 3.75% at next week's meeting, though markets are pricing in one to two quarter-point hikes by end-2026.