{"id":3598,"date":"2025-12-14T18:36:01","date_gmt":"2025-12-14T18:36:01","guid":{"rendered":"https:\/\/microvibenews.com\/?p=3598"},"modified":"2025-12-14T18:36:01","modified_gmt":"2025-12-14T18:36:01","slug":"bank-rate-setters-meet-amid-talk-of-0-5-cut-daily-business","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=3598","title":{"rendered":"Bank rate-setters meet amid talk of 0.5% cut \u2013 Daily Business"},"content":{"rendered":"

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\"Money\"Money
Sterling will be under pressure from lower interest rates<\/em><\/figcaption><\/figure>\n

A cut in interest rates this week seems nailed on, amid talk that it could be bigger than the quarter point expected.<\/p>\n

The Bank of England is expected to reduce borrowing charges from 4% to 3.75%, with some suggesting a 0.5% cut is not out of the question in view of the deteriorating economy. <\/p>\n

Growth fell 0.1% in October when a 0.1% rise was forecast and there is talk of a recession in 2026.<\/p>\n

A bigger rate cut would bring the UK closer to rates elsewhere. It is 2% in the eurozone and 2.25% in Canada, though the US is broadly in line with the UK with a 3.5-3.75% range.\u00a0<\/p>\n

A cut will offer some cheer to businesses and homebuyers but with more weak jobs data also due this week, sterling will remain under pressure.<\/p>\n

The pound\u2019s winning streak against the dollar came to an abrupt end following the release of the economic data. The sterling to dollar exchange rate dropped from $1.1396 to $1.1380. Against the euro the pound fell from \u20ac1.1410 to \u20ac1.1390.<\/p>\n

This will hurt holiday makers heading to Europe over the Christmas break and raise Britain\u2019s energy-buying costs.<\/p>\n

Samuel Mather-Holgate,\u00a0managing director at wealth manger Mather and Murray Financial, said: \u201cI believe markets are underestimating the possibility of a 0.5% mega-cut in the base rate, as the Bank of England, for once, seeks to get ahead of the curve.\u201d<\/p>\n

The majority view is that rate setters will resist a larger cut because of the persistent inflationary pressures. Data on inflation will be published on Wednesday, a day before the Bank\u2019s announcement.<\/p>\n

Chartered Financial Planner Anita Wright at\u00a0Ribble Wealth Management, believes a\u201d0.5% cut is not out of the question\u201d, stating that \u201cthe key point is that policy will now be set with an eye to warding off recession first and worrying about inflation second.\u201d<\/p>\n

DIARY<\/u><\/strong><\/p>\n

Monday 15 December<\/strong><\/p>\n

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  • Rightmove UK house price survey<\/li>\n<\/ul>\n

    Tuesday 16 December<\/strong><\/p>\n

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    • Full year figures from WH Smith<\/strong><\/li>\n
    • Trading statement from\u00a0SThree<\/strong><\/li>\n
    • UK unemployment, job vacancies and wage growth<\/li>\n
    • Flash purchasing managers\u2019 indices for manufacturing and services industries <\/li>\n<\/ul>\n

      Wednesday 17 December<\/strong><\/p>\n

      Thursday 18 December<\/strong><\/p>\n

        \n
      • Half-year figures from Currys<\/strong><\/li>\n
      • Bank of England decision on interest rates<\/li>\n
      • US inflation<\/li>\n<\/ul>\n

        Friday 19 December<\/strong><\/p>\n

          \n
        • UK retail sales<\/li>\n
        • UK government borrowing figures<\/li>\n<\/ul>\n

          \t <\/div>\n