Odds of Bank of England interest rate cut strengthen as inflation falls to 2.8%

Bigger-than-forecast decline in annual rate in February is positive news for Rachel Reeves

The odds of the Bank of England cutting interest rates in May have been strengthened after inflation cooled by more than forecast last month.

In a boost for Rachel Reeves on the day of her spring statement, the Office for National Statistics (ONS) said inflation as measured by the consumer prices index eased to 2.8% in February from 3% in January.