UK Gilt Yields Fall After BoE Decision

2025-12-18 12:16 By Joana Taborda 1 min. read

The UK 10-year gilt yield edged down to just below 4.49%, its lowest level in about two weeks, as traders pared back expectations for further easing following today’s Bank of England rate decision.

The BoE cut the Bank Rate by 25 basis points at its final meeting of the year, in line with expectations amid easing inflation and mounting signs of economic strain.

However, only five policymakers voted in favor of the cut while four opted to hold rates, a less dovish-than-expected split.

Markets are now pricing in around 62 basis points of rate cuts by the end of next year, down from roughly 66 basis points before the decision.

Policymakers reiterated that any further easing would proceed at a “gradual” pace and stressed that future decisions would be more finely balanced.



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