FTSE 100 down 0.3, FTSE 250 off 0.4
Marks Spencer soars on annual profit boost
Mitchells Butlers up after annual results at top end of consensus
British CPI rose to 2.3 in April

May 22 Reuters Britain39;s FTSE 100 stock index hit a twoweek low on Wednesday as slowerthanexpected deceleration in Britain39;s inflation knocked off hopes of a June interest rate cut by the Bank of England, while Marks Spencer39;s gained on upbeat annual profit.

The bluechip FTSE 100 index fell 0.3, set for its biggest drop in more than a month. The pound strengthened against the dollar and touched a twomonth high of 1.2732.

British consumer prices rose 2.3 in April, slowing from a 3.2 increase in March, while economists polled by Reuters expected a 2.1 rise.

The twoyear gilt yield that moves closely with expectations of interest rates rose to its highest in three weeks at 4.462.

There39;s a bit of a slump… but still quite a bit of good news in this print, but the BoE cut in June is essentially off the table, said Thomas Gehlen, senior market strategist, SG Kleinwort Hambros.

A stronger pound and a falling bond is just indicating that the rate cutting path is pushed backwards by a month or two.

Money markets are now pegging a mere 14 chance of a BoE rate cut in June, with a cut now fully priced only in November.

Among sectors, ratesensitive homebuilders were the worst hit after the inflation data, sliding 1.6.

Nvidia39;s quarterly results, due later in the day, are also on…