The Bank of England (BoE) delivered a closely split rate cut as expected, stressing that policy decisions will become more finely balanced as the easing cycle nears its end, with only one more cut likely in early 2026, TDS' economists report.

Close vote underscores policy nuance

"The BoE cut in a close vote as expected and indicated that future decisions will become more nuanced as it is closer to the end of the easing cycle. This is in line with our call for one more cut in Q1 26 and then done."

"We remain bullish on the GBP overall as there is scope for positioning there to improve amidst softening USD sentiment, removal of any lingering budget or political risk premia, our relatively hawkish expectations of BoE being done after one more cut and GBP's overall beta to global growth."