Investors Adjust Expectations on Bank of England Rate Cuts

LONDON (Reuters) – Investors have reduced their expectations for how quickly the Bank of England (BoE) will cut interest rates next year. This change comes after the U.S. Federal Reserve indicated that it would proceed slowly with lowering borrowing costs.

On Thursday, interest rate futures suggested approximately 46 basis points of cuts to the BoE's benchmark Bank Rate by December 2025. This is a decrease from about 50 basis points that were priced into the market on Wednesday.

The BoE is anticipated to maintain borrowing costs during its monetary policy meeting on Thursday at 1200 GMT, as it aims to gradually lower rates amid ongoing inflation pressures, despite evidence of an economic slowdown.