Gilts Are Worth Buying Due to U.K. Rate-Cut Prospects, Says State Street IM -- Market Talk

Dow Jones12-16 22:49

1448 GMT - State Street Investment Management sees potential value in U.K. government bonds, or gilts, due to prospects of further interest-rate cuts, it says in a note on its 2026 outlook. "A sluggish [U.K.] economy and the increasing likelihood of sustainably lower inflation underpins the prospect of more Bank of England rate cuts." The recent U.K. budget also showed the government is aiming to retain market confidence while containing rapidly rising public borrowing and trying to foster growth prospects, the investment manager says. However, "A credible commitment to spending cuts is required to realize the full potential." (jessica.fleetham@wsj.com)

 

(END) Dow Jones Newswires

December 16, 2025 09:49 ET (14:49 GMT)

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