BOE Terminal Rate Could be 3.5% as Inflation Risks Persist -- Market Talk
Dow Jones12-05
0959 GMT - The Bank of England could cut interest rates twice more to a terminal rate of 3.5%, Berenberg's Andrew Wishart says in a note. The risk of inflation rising again could limit potential interest-rate cuts, he says. The BOE needs to strike a balance to ensure it doesn't cut rates too quickly and stoke inflation, nor cut rates too slowly and risk a more severe rise in unemployment, Wishart says. Markets fully price in two more BOE rate cuts and a potential third rate cut by the end of 2026, LSEG data show. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
December 05, 2025 04:59 ET (09:59 GMT)
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