Bank Of England Set To Cut Rates As Inflation And Economy Slow | Metals Mine

  • Bank Of England Set To Cut Rates As Inflation And Economy Slow

    From beemarkets.com

    The Bank of England is expected to lower interest rates on Thursday after a sharp slowdown in inflation and a weakening in economic growth, but a string of further cuts in 2026 looks unlikely given Britain's lingering price pressures. Investors think the BoE will reduce its benchmark rate to 3.75% from 4% for a fourth cut of 2025, welcome news for finance minister Rachel Reeves and Prime Minister Keir Starmer who are struggling to meet promises to voters of faster economic growth. A quarter-point cut would take Bank Rate to its lowest level in nearly three years, although that would still be almost double the ... (full story)

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ZforexCM
Dec 18, 2025 1:24am
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Sterling traded sideways near 1.3370 as investors positioned for a widely expected Bank of England rate cut to 3.75 percent. A sharper than forecast drop in November inflation to 3.2 percent and signs of a cooling labour market have strengthened the case for easing, even as policymakers remain cautious about the pace of future cuts due to persistent services inflation.

Markets see this move as a measured adjustment rather than the start of an aggressive easing cycle, with only one or two further cuts priced for 2026. This cautious outlook has kept GBP/USD rangebound.

From a technical view, support stands near 1.3310, with resistance around 1.3430.

R1: 1.3430 | S1: 1.3310
R2: 1.3500 | S2: 1.3260
R3: 1.3540 | S3: 1.3200
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