Jeremy Hunt raises hope of new tax cut as inflation drops faster than expected

Rob Wood, chief UK economist at Pantheon Macroeconomics, said: “We continue to think that CPI (inflation) outturns over the coming months will convince the MPC that monetary policy does not need to be quite as “restrictive” as it is currently, though it looks like a toss-up whether the Committee will opt to cut Bank Rate for the first time in June or August.”