Boost to Gilts From BOE Rate Cuts Is Offset by Weak Economy, Politics -- Market Talk

Dow Jones02-26

1357 GMT - Schroders have a neutral stance on U.K. government bonds as gains from U.K. interest-rate cuts are offset by a weak economy, lingering inflation risks and political uncertainty, chief investment officer Patrick Brenner says in a note. "While the Bank of England is expected to cut rates amid a window of disinflation, weakening growth and rising political risk temper conviction," Brenner says. "The near-term policy backdrop is supportive, but medium-term inflation risks remain," he says. U.K. investors await the outcome of Thursday's special election in Gorton and Denton, given the ruling Labour Party's recent declining popularity in opinion polls. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

February 26, 2026 08:57 ET (13:57 GMT)

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