Fewer BOE Rate Cuts Are Possible in 2026 Due to High Inflation -- Market Talk

Dow Jones12-11

1323 GMT - The Bank of England could deliver fewer interest-rate cuts in 2026 than it did in 2025 due to relatively high U.K. inflation, AJ Bell's Laith Khalaf says in a note. The BOE is widely expected to cut its key Bank rate by 25 basis points to 3.75% at the December 18 rate decision, but the pace of rate cuts is likely to decline in the coming months, Khalaf says. "Previous monetary easing will still be working through the system and greasing the wheels, but fresh stimulus could be in short supply throughout 2026." The BOE's Bank rate has fallen from 4.75% at the start of 2025. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

December 11, 2025 08:23 ET (13:23 GMT)

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