Economic Calendar
UK 10-Year Gilt Yield Falls to Over 3-Week Low
The UK 10-year gilt yield fell to 4.48%, the lowest in more than three weeks, as market expectations for further monetary easing moderated. The Bank of England cut its main rate by 25 basis points to 3.75% in December, in a narrow 5-4 vote reflecting ongoing inflation concerns. While headline inflation eased to 3.2% in November, it remains above the BoE’s 2% target, prompting Governor Andrew Bailey to signal that rates may decline further but likely at a gradual pace. UK GDP rose 0.1% in Q3, aligning with forecasts, though the BoE expects flat growth in Q4. Traders continue to anticipate at least one additional rate cut in the first half of next year.
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