Markets expect Bank of England to clasp rates steady
General presumption of the Bank of England and the Bank of England's Prudential Regulation Authority (PRA) successful March 2025.
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Markets are present pricing successful a more-than 90% probability the Bank of England keeps rates wherever they are astatine its adjacent meeting.
Some analysts disagree. Capital Economics says it expects the cardinal slope to support cutting astatine each gathering until it reaches a 3% basal complaint adjacent twelvemonth due to the fact that it disagrees with its ostentation forecasts, and says "it's lone a substance of time" earlier labour marketplace weakness leads to wage maturation and ostentation coming backmost down toward the Bank's target.
But the steadfast says it's "less assured that the adjacent chopped volition travel successful November aft the Bank's alteration successful tone."
Economists astatine Santander UK are firmly successful the other camp, with the lender citing "ugly ostentation optics" and Chancellor Rachel Reeves' upcoming fund arsenic reasons it doesn't spot different chopped earlier the extremity of the year.
Meanwhile, Barclays has a November chopped arsenic its basal case, flagging the hazard of Reeves' imaginable fund measures dragging connected GDP maturation and pulling ostentation lower.
— Jordan Butt
Munich Re adjusts net forecast
Shares of Munich Re are little successful pre-market trade, aft the reinsurer lowered its security gross forecast for 2025. The radical cited overseas speech and concern developments, but second-quarter nett net inactive came successful supra expectations.
— Michael Considine
The UK authorities won’t admit it, but taxation rises are coming
Britain's Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves connected June 23, 2025.
Jacob King | Pool | Afp | Getty Images
The U.K. authorities is loathe to admit it, but economists accidental it's highly apt that the Treasury volition person to hike taxes successful the autumn if it is to bung a achromatic spread successful the nationalist finances that it has efficaciously created for itself.
The National Institute of Economic and Social Research (NIESR) is the latest economical deliberation vessel to pass that taxes would person to emergence aboriginal this twelvemonth if British Chancellor Rachel Reeves is to conscionable her self-imposed "fiscal rules."
What’s been happening successful planetary markets
A thoroughfare motion is seen adjacent the New York Stock Exchange (NYSE) successful New York City, New York, U.S., August 7, 2025.
Eduardo Munoz | Reuters
Opening calls
An aerial presumption of cardinal London.
Henry Nicholls | Afp | Getty Images
Hello from London.
Regional indexes look acceptable for a muted unfastened this morning, with futures tied to the FTSE 100 and Germany's DAX trading flat, portion those tied to the French CAC 40 were past seen trading 0.2% higher.
Euro Stoxx 50 futures are small changed.
European shares ended Thursday's league higher aft Moscow confirmed Russian President Vladimir Putin was scheduled to conscionable with U.S. counterpart Donald Trump wrong days.
— Chloe Taylor
English (US) ·