LIVE MARKETS-No "nasty surprises" in CPI for Reeves ahead of budget update

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NO "NASTY SURPRISES" in CPI FOR REEVES AHEAD OF BUDGET UPDATE

Analysts and economists are digesting slightly softer than expected UK inflation figures with an hour or so left until UK chancellor Rachel Reeves delivers her budget update, with spending cuts expected.

The inflation figures might have been a snooze-fest in terms of altering economists' expectations for Bank of England rate cuts - expectations for a May cut moved from a whisker below 50% to a whisker above - but for Reeves the slight softness didn't do any more damage to the vibes.

"UK inflation figures haven’t thrown up any nasty surprises ahead of Rachel Reeves Spring Statement later today," says Derren Nathan, head of equity research Hargreaves Lansdown.

"That’s helped the FTSE post a small gain at the open,", though he adds it will take more than that to fully dispel stagflationary fears.

The FTSE 100 .FTSE is up 0.2% at 1130 GMT, outperforming broader European markets with the STOXX 600 .STOXX falling 0.4%.

Over at RBC, economists retain their call for the MPC to deliver another rate cut at its May meeting.

Capital Economics also stick with its base case for further cuts in May and August, with consecutive cuts from September.

(Lucy Raitano)

FOR WEDNESDAY'S OTHER LIVE MARKETS POSTS:

DIFFICULT DAYS ARE BACK FOR DOLLAR BEARS CLICK HERE

DECLINES AS HEALTHCARE AND AUTOS LEADS LOSSES CLICK HERE

EUROPE BEFORE THE BELL: GAINS AHEAD OF UK BUDGET UPDATE CLICK HERE

LOOKING TO APRIL 2 WITH TREPIDATION CLICK HERE