Lower BOE Policy Rate Could Support Gilts, Sterling -- Market Talk

Dow Jones12-18 19:53

1153 GMT - Lower rates by the Bank of England could boost gilts and sterling performance, strategists at Societe Generale say in a note. The BOE is expected to cut interest rates to 3.75% at the rate decision due at 1200 GMT. Lower rates are likely to support real household incomes, boost GDP growth, and improve the fiscal position, offering a boost for sterling, the strategists say. Reduced BOE rates are also likely to raise the appeal of gilts due to lower yields and higher prices, and lighten the financing of index-linked bonds, they say. Ten-year gilt yields fall 2 basis points to last trade at 4.447%, Tradeweb data show. Sterling falls 0.2% to $1.3352. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

December 18, 2025 06:53 ET (11:53 GMT)

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