18.12.202512:11:18UTC+00British Pound Little Changed after BoE

The British pound stabilized around $1.33 following the Bank of England's decision to reduce the bank rate by 25 basis points in its final gathering of the year, a move widely anticipated by financial markets. The decision saw a vote split of 5–4, with Governor Andrew Bailey endorsing the rate cut. Policymakers reaffirmed their approach towards a "gradual" reduction trajectory, cautioning that future policy choices will likely face closer scrutiny. Market analysts are now projecting roughly 62 basis points of further easing from the central bank by the end of the upcoming year, a slight revision from the 66 basis points expected prior to the announcement. The rate reduction comes on the heels of a steady stance observed in September and November, set against a backdrop of waning inflationary pressures and growing economic challenges. Notably, UK annual inflation fell to 3.2% in November, hitting an eight-month low and dipping below the Bank of England’s 3.4% projection. Concurrently, the GDP shrank for the second month in a row in October, while wage growth in the private sector showed signs of slowing down.