Steady U.K. inflation sees pound and bond yields fall as traders boost Bank of England rate-cut bets

The British pound and government bond yields fell, while stocks rose, after a report showing steady U.K. inflation raised hopes the Bank of England can soon consider trimming interest rates.

The Office for National Statistics on Wednesday said the headline consumer price index for the year to January increased 4%, the same as in December. Economists had expected inflation to pick up pace in January to 4.2%.

The…