12
Dec
The BOE will lower its key interest rates sooner than expected
GDP down in Q3. Q4 potentially negative. Confidence eroding.New risks for employment. Inflation holding steady. Rate cuts on the horizon. Bond markets attractive. Outlook for the FTSE100 reduced.
Key points
- The UK misses out on hoped-for rebound in Q3
- Difficult end to the year for UK growth
- Slowdown in services clouds the outlook
- End of resilience in the job market
- Household confidence erodes
- Inflation shows insufficient signs of slowing
- BoE set to change tone
- Bond market offers attractive yields
- Changing expectations for sterling
- Real estate favored by upcoming rate cuts
- Moderate outlook for FTSE100 in Q1 2026
