UK inflation held steady at 2.2% in August, meeting expectations and easing pressure on the Bank of England (BoE) to cut interest rates immediately. While inflation remains close to the BoE’s 2% target, persistent price increases in the services sector, including a sharp rise in airfares, have led economists to predict the BoE will hold rates this week. However, a rate cut is likely later in the year as inflation stabilises and economic momentum cools. Wage growth has also slowed, adding to the case for future rate cuts.