Bank of England rate-cut vote expected amid slowing inflation

Monday, December 15, 2025 at 07:00 UTC+01:00 (+0100), United Kingdom, London

News category : Macroeconomic Events

On December 15, 2025 leading financial news coverage highlighted strong market expectations that the Bank of England would approve a 25-basis-point reduction in its benchmark interest rate this week. Analysts pointed to recent data showing subdued inflation and rising unemployment, which have tempered policy uncertainty and bolstered arguments for further monetary easing. A Reuters poll of economists and policymakers suggested a closely contested vote with Governor Andrew Bailey potentially decisive in steering the direction of future policy changes. The expected cut has implications for sterling and UK fixed income markets, as traders gradually reprice yield curves and adjust their holdings in anticipation of lower borrowing costs. :contentReference[oaicite:2]{index=2}

Overall market impact

Mild bearish market impact - strength score : 70/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

GBP/USD

Gilts

FTSE 100

UK banking equities

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