Live Updates > Live Update Details
2025-12-16 16:07:25
[Focus on UK and Eurozone PMI Preliminary Readings During European Trading Session; Central Bank Policy Path Expected to Remain Stable] ⑴ Preliminary PMI data for the UK and major Eurozone economies will be released during the European trading session. ⑵ However, these data are expected to have limited impact on the policy stance of their respective central banks. ⑶ The market widely expects the Bank of England to cut interest rates by 25 basis points on Thursday, bringing the benchmark rate down to 3.75%. ⑷ The Bank of England is likely to proceed cautiously thereafter, as rates will move into its "rather broad" neutral range of 2% to 4%. ⑸ The market expects at least one more rate cut in 2026 following this one. ⑹ For the European Central Bank, it is expected to maintain all policies unchanged and will not reveal much information regarding future guidance. ⑺ Almost all ECB members have repeatedly emphasized that the next move could go in either direction, and they will not react to slight or short-term deviations in the inflation rate from the 2% target.
