๐ฃ BIG MACRO ALERT ๐ฌ๐ง | Festive Relief for Borrowers ๐
A potential interest rate cut from the Bank of England could bring early holiday cheer to markets, homeowners, and businesses this week ๐๐
๐ Whatโs Expected:
๐ Rate Cut: โ25 bps (0.25%)
๐ Decision Date: Thursday, Dec 18, 2025
๐ Base Rate: 4.00% โ 3.75% (lowest in ~3 years)
๐ก Why This Matters:
โข UK inflation eased to 3.6% in October
โข Labour market is cooling ๐ง
โข Pressure on policymakers to support growth is rising
๐ Who Benefits Most:
โ ~600,000 homeowners on tracker & variable-rate mortgages
โ Businesses relying on credit
โ Housing market sentiment overall
โ๏ธ The Bigger Picture:
This move brings rates closer to the โneutral zoneโ (2โ4%), meaning future cuts may be slower and more cautious as the BoE balances growth with inflation risks.
๐ Market Takeaway:
Easing monetary policy = supportive liquidity conditions. If this trend continues into 2026, risk assets could stay in focus ๐
โณ All eyes on Thursdayโs official announcement.
๐ฌ Whatโs your outlook for the UK economy in 2026?
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