Central banks signal a slower path on rates as inflation cools unevenly

Rate-setters on both sides of the Atlantic used near-identical language this week: patience. Behind it sits a genuine disagreement about how much of the recent disinflation is durable.

Goods prices have fallen back to pre-shock trends, but services inflation remains sticky, propped up by wage settlements agreed when expectations were far higher.

Markets now price a single cut before year end, down from three at the start of the quarter. Bank equities rallied on the revision; rate-sensitive property names fell.