U.K.'s Weakening Labor Market Will Prompt BOE to Cut Rates -- Market Talk
Dow Jones
Feb 05
1303 GMT - The continued loosening of the U.K. jobs market should prompt the Bank of England to cut interest rates later this year, Fitch Ratings' Jessica Hinds says in a note. The decision to hold the key rate at 3.75% was more finely balanced than expected, and the meeting's accompanying statement acknowledged that judgments around further policy easing will become a closer call, she says. The deterioration in the labor market will likely dampen demand and wage pressures sufficiently for the bank to cut three times in 2026 to 3%, however, Hinds says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
February 05, 2026 08:03 ET (13:03 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.