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15.12.202513:11:45UTC+00UK Bond Yields Little Changed, Data, and BoE Eyed

The yield on UK 10-year government bonds held steady at approximately 4.5% as traders braced themselves for the Bank of England's upcoming monetary policy announcement. The central bank is anticipated to lower the key interest rate by 25 basis points to 3.75%, marking the lowest rate since 2022. This move is prompted by a rise in unemployment and a stagnant economy that collectively ease inflationary pressures. However, upcoming economic indicators, such as reports on wage growth and inflation, which are predicted to show a deceleration, will provide further guidance on the monetary policy outlook for 2026. Market participants are factoring in the possibility of one or two additional rate cuts in the coming year, with these expectations likely to be shaped by the forthcoming data releases.

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