Analysts at TD Securitiesnote the UK’s inflation data was a touch stronger than expected this morning with CPI coming in at 1.5% YoY in November (market 1.4%), but that is its joint-lowest YoY rate in 3 years, so the overall picture is still pretty tame.

• “Core CPI was unchanged at 1.7% y/y, in line with consensus. Overall, inflation is running in line with what the BoE had expected in the November MPR, so shouldn't be a major factor in tomorrow's rate decision. The bigger issues are the evolution of political uncertainty, Brexit negotiations, and overall growth dynamics.”