The yield on the UK 10-year gilt fell to below 4.7% from a three-month high of 4.7456% on August 19, as markets weighed Powell’s Jackson Hole remarks and the latest inflation data. Powell signaled possible Fed rate cuts, citing shifting risks between jobs and prices, though tariffs remain an inflation concern. In the UK, July inflation came in hotter-than-expected at 3.8%, curbing expectations for further near-term rate cuts by the Bank of England. Markets now price a 57% chance the Bank Rate stays at 4% through December, with odds favoring a cut to 3.5% by end-2026. Elevated borrowing costs add pressure on Chancellor Rachel Reeves ahead of the autumn budget, which may require savings or tax hikes. Meanwhile, the ECB is expected to hold at 2%, effectively ending its easing cycle.