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2025-12-15 14:03:06
[Bank of England Expected to Cut Rates This Week] The Bank of England is expected to announce a rate cut this Thursday, lowering its benchmark interest rate from 4.0% to 3.75%. This would be the first rate cut since August, bringing borrowing costs to their lowest level in three years. Markets predict the decision will likely pass by a narrow margin of 5 votes in favor and 4 against. A key change is that Bank of England Governor Bailey may reverse his previous stance and vote in favor of the rate cut, after hinting last month that he would be inclined to ease policy if there is evidence of easing inflation. Most analysts expect that if a rate cut occurs, the Bank of England may adjust its forward guidance, removing the phrase "gradually declining" to retain flexibility for future actions. Markets widely anticipate that, with major central banks nearing the end of their rate-cutting cycles, the Bank of England may only cut rates once more in 2026.
