Lana

Fresh data showed that UK inflation slowed in January, so investors are expecting the Bank of England, BOE, to give interest rates a spring clean come March.

Consumer prices were only 3% higher in January than a year back, the lowest level in 10 months, and a slowdown from December's 3.4% increase.

Mind you, that was largely thanks to lower food and fuel prices.

Without them, the remaining core inflation was still higher than forecast.

Still, that lower headline figure could give the BOE the push it needs to bring interest rates down, especially since it only kept them on hold by a narrow five to four vote last time.

Traders certainly think so.

They're betting the central bank will bring out the scissors in March.

Unemployment climbed to 5.2% in January, nearing a five-year high.

It's even worse for 16- to 24-year-olds.

In that group, joblessness is now the highest in over a decade and above Europe's overall average.

That kind of weakness gives the BOE another reason to lean toward a cut, since lower borrowing costs can support company spending and therefore hiring.

A trim won't magically fix the structural stuff though, like the higher taxes and minimum wage hikes that have made it more expensive to hire entry-level workers.

Traders now expect at least two rate cuts this year, and that's changing the way folks see British assets.

Investors have sent the pound down, since lower rates mean weaker returns.

They've also rushed into government bonds, eager to lock in today's interest rates before cuts potentially bring them down.

On top of that, they pushed the FTSE 100 index to a record high on Wednesday, expecting solid performances from defense and commodity companies this year.

That's it for today.

I'm Lana.

I'll see you tomorrow.

Hey, I'm Lana with your Daily Brief for Wednesday, February 18th.