SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Two British Interest Rate Cuts in Sight

Inflation in the UK fell for the first time in three months in December, down to 2.5 percent, according to figures from the statistics agency ONS. The unexpected decline has led the market to start counting on two interest rate cuts from the Bank of England this year.

» Published: 15 January 2025

Two British Interest Rate Cuts in Sight
Photo: Frank Augstein/AP/TT

The market reaction was clear after the recent hard upward pressure on British market rates – linked to distrust of the country's public finances.

The pound is falling against other currencies, and in the pricing of the derivatives market, actors are now counting on two rate cuts by the British central bank this year. Before Wednesday's inflation figures, there was great uncertainty about the second rate cut.

The December inflation rate can be compared to 2.6 percent in November and an average forecast of 2.6 percent for December, according to a compilation of forecasts made by Bloomberg.

The core inflation rate, where energy and food prices, among other things, have been excluded, fell to 3.2 percent in December. It was 3.5 percent in November and can be compared to an average forecast of 3.4 percent for December.

Compared to the previous month, consumer prices in the UK rose by 0.3 percent in December. Expectations were for an increase of 0.4 percent.

The British central bank, the Bank of England, has an inflation target of 2 percent.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Klarna aims to list on the US stock exchange in April
1 MIN READ

Klarna aims to list on the US stock exchange in April

More exchange USA-Japan - but also threat of tariffs
1 MIN READ

More exchange USA-Japan - but also threat of tariffs

Payment problems at the State Liquor Store
1 MIN READ

Payment problems at the State Liquor Store

Fewer new jobs in the USA than expected
1 MIN READ

Fewer new jobs in the USA than expected

Worse economic development expected for Russia
1 MIN READ

Worse economic development expected for Russia

Bound Mortgage Rates on the Way Up
2 MIN READ

Bound Mortgage Rates on the Way Up

The Stockholm Stock Exchange closed the week with a decline
2 MIN READ

The Stockholm Stock Exchange closed the week with a decline

Trade from Shein and Temu Slows Down
1 MIN READ

Trade from Shein and Temu Slows Down

SBAB gains market shares on the mortgage market
1 MIN READ

SBAB gains market shares on the mortgage market

Skanska increases the dividend
1 MIN READ

Skanska increases the dividend

Saab raises forecast – but the stock price falls
2 MIN READ

Saab raises forecast – but the stock price falls

Worse than expected for Schibsted
1 MIN READ

Worse than expected for Schibsted

XXL's Profit Shrinks
1 MIN READ

XXL's Profit Shrinks

India's Central Bank Lowers Interest Rate
1 MIN READ

India's Central Bank Lowers Interest Rate

Housing Prices Fall - May Drop Further
2 MIN READ

Housing Prices Fall - May Drop Further

The Baltic States Sever Electricity Cables to Russia
2 MIN READ

The Baltic States Sever Electricity Cables to Russia

Upwards in China – downwards in Japan
1 MIN READ

Upwards in China – downwards in Japan

United Arab Emirates invests in French AI
1 MIN READ

United Arab Emirates invests in French AI

Amazon both meets and disappoints expectations
2 MIN READ

Amazon both meets and disappoints expectations

Wall Street awaits job figures
2 MIN READ

Wall Street awaits job figures