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2025-12-19 00:55:37
[HSBC Asset Management: Bank of England Expected to Continue Rate Cuts, Leading to Lower UK Bond Yields] In a report, Hussein Mehdi of HSBC Asset Management noted that following Thursday's 25 basis point rate cut, the Bank of England is expected to continue cutting rates, which will lead to lower UK bond yields. "Given the initially high levels of UK bond yields, we believe UK bonds still have good upside potential in 2026," Mehdi said. He added that the Bank of England's rate cuts could also support the UK stock market. "Further rate cuts by the Bank of England could help maintain positive momentum in the market, which is currently still at historically low levels relative to other regions."
