Bank of England Policy Announcement (18th Dec. 2025)

18th December 2025

For updated and more detailed analysis see here. The Bank of England struck a slightly hawkish tone while cutting interest rates from 4.00% to 3.75% today. But with inflation set to fall further than the Bank expects, we still think a rate cut in February is possible and that rates will fall to 3.00% in 2026 rather than to the low of 3.50% currently priced into the market.

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