BOE's Split Committee Suggests Further Rate Cuts Won't Be Rushed -- Market Talk

Dow Jones12-18 21:49

1349 GMT - The Bank of England's statement and minutes accompanying the decision to cut its benchmark rate to 3.75% suggest it won't be rushing ahead with rate cuts in 2026, says Jessica Hinds, director in Fitch Ratings' Economics team. While a rate cut had seemed a foregone conclusion after the labor-market and inflation data earlier this week, the vote was still a tight one. As expected, Gov. Andrew Bailey provided the decisive vote in favor of a cut, Hinds says in a note. "Looking ahead, we still think that the disinflation trend and deteriorating labor market will prompt the monetary-policy committee to cut all the way to 3%." However, it will take the best part of next year to get there, she says. (edward.frankl@wsj.com)

 

(END) Dow Jones Newswires

December 18, 2025 08:49 ET (13:49 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment