With June's inflation reading coming in hotter than the month prior, the Fed is under renewed pressure to maintain its current target range for the federal funds rate. Analysts now see little chance of a rate cut in the near term. That means HELOC borrowers are unlikely to see significant rate drops anytime soon.

UK inflation unexpectedly rose to an 18-month high of 3.6 per cent in June, in a setback for the Bank of England as it tries to cut interest rates to support the country’s slowing economy. Wednesday’s figure from the Office for National Statistics exceeded the prediction of analysts polled by Reuters that inflation would remain at May’s level of 3.

Federal Reserve Bank of San Francisco President Mary Daly said she still thinks it’s reasonable for policymakers to plan on two interest-rate cuts this year, emphasizing that the central bank should not wait too long before moving.

The inflation gauge the Federal Reserve relies on most to decide whether to raise or lower U.S. interest rates is likely to cement a decision by the central bank to stand pat at its next meeting at the end of July.

Some investors had clung to a bit of hope that the Federal Reserve would cut interest rates at its next meeting on July 30. Tuesday's report on inflation brought the chances of that down even further.