Finance
Investors trim bets again on Bank of England rate cuts in 2025
Published by Global Banking & Finance Review®
Posted on December 19, 2024
1 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 19, 2024
1 min readLast updated: January 27, 2026
Investors have lowered expectations for Bank of England rate cuts in 2025, influenced by the Federal Reserve's cautious approach. The BoE plans a gradual rate reduction due to inflation concerns.
LONDON (Reuters) - Investors reduced further their bets on how quickly the Bank of England will cut interest rates next year after the U.S. Federal Reserve signalled it would move slowly with reducing borrowing costs.
Interest rate futures on Thursday pointed to roughly 46 basis points of cuts to the BoE's benchmark Bank Rate by December 2025, down from about 50 basis points of cuts which were priced into the market on Wednesday.
The BoE is expected to keep borrowing costs on hold at 1200 GMT on Thursday after its December monetary policy meeting. It has said it will move gradually to lower rates because of inflation pressures in the economy, despite signs of a slowdown.
(Writing by William Schomberg; editing by Sarah Young)
The article discusses investors adjusting their expectations for Bank of England interest rate cuts in 2025, influenced by the Federal Reserve's stance.
Investors are adjusting their bets due to the Federal Reserve's indication of a slow approach to reducing borrowing costs.
The Bank of England is expected to keep borrowing costs on hold, with a gradual approach to lowering rates due to inflation pressures.
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