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Bank Of England Set To Cut Rates As Inflation And Economy Slow
The Bank of England is expected to lower interest rates on Thursday after a sharp slowdown in inflation and a weakening in economic growth, but a string of further cuts in 2026 looks unlikely given Britain's lingering price pressures. Investors think the BoE will reduce its benchmark rate to 3.75% from 4% for a fourth cut of 2025, welcome news for finance minister Rachel Reeves and Prime Minister Keir Starmer who are struggling to meet promises to voters of faster economic growth. A quarter-point cut would take Bank Rate to its lowest level in nearly three years, although that would still be almost double the ... (full story)
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ZforexCM
Dec 17, 2025 11:24pm
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At its meeting ending on 17 December 2025, the Monetary Policy Committee voted by a majority of 5–4 to reduce Bank Rate by 0.25 percentage points, to 3.75%. Four members voted to maintain Bank Rate at 4%. CPI inflation has fallen since the previous meeting, to 3.2%. Although above the 2% target, it is now expected to fall back towards target more quickly in the near term. Reflecting restrictive monetary policy, and consistent with evidence of subdued economic growth and building slack in the labour market, pay growth and services price inflation have continued to ease. Monetary policy is being set to ensure CPI inflation settles sustainably at 2% in the medium term, which involves balancing the risks around achieving this. The risk from greater inflation persistence has become somewhat less pronounced since the previous meeting, while the risk to medium-term inflation from weaker demand remains. The extent of further easing in monetary policy will depend on the evolution of the outlook for inflation. The restrictiveness of policy has fallen as Bank BoE's Bailey Switches Vote To Rate Cut - Bailey Says We Still Think Rates Are On Gradual Downward Path - Bailey: With Every Cut, How Much Further We Go Becomes ‘Closer Call’ - Staff Forecast Zero Growth In Q4 GDP (Nov Forecast: +0.3% Q/Q), Underlying Growth Around 0.2% Q/Q BoE's Taylor: Neutral around 3%, should head there sooner. BoE's Lombardelli: CPI upside risks are a worry, we may need slower easing. BoE’s Greene: CPI risks to downside, backs cautious easing. BoE's Breeden: Upside risks to inflation have diminished. BoE's Pill: Easing case…
Japan’s central bank on Thursday kicked off its last policy meeting of the year, with expectations that it will raise benchmark interest rates to their highest in 30 years, as it seeks to move ahead with policy normalization set forth last year. The decision, due Friday, could see rates raised to 0.75% — highest since 1995 — with data from LSEG showing an ...
HASSETT - LOTS OF ROOM FOR FED TO CUT RATES HASSETT - EXPECT BIG ANNOUNCEMENT ON HOUSING COSTS WH Sr. Adviser Hassett: We are having a big meeting on housing tomorrow HASSETT - FED NEEDS TO BE 100% MORE TRANSPARENT
