{"id":111707,"title":"City Predicts a 1 Percentage Point Decrease in Interest Rates Over the Next 12 Months","publisher":"Share Talk","author":"sharetalk","published":"2023-12-13T16:18:22+00:00","modified":"2023-12-13T16:18:22+00:00","canonical_url":"https://www.share-talk.com/city-predicts-a-1-percentage-point-decrease-in-interest-rates-over-the-next-12-months/","markdown_url":"https://www.share-talk.com/city-predicts-a-1-percentage-point-decrease-in-interest-rates-over-the-next-12-months.md","json_url":"https://www.share-talk.com/city-predicts-a-1-percentage-point-decrease-in-interest-rates-over-the-next-12-months.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["BANK","Bank of England","banking","BARC","Barclays","Benchmark","BoE","buyback","Chancellor","childcare","CME Group","consumers","Coverage","CS Venkatakrishnan","domestic","ECB","energy bill","England","European Central Bank","FCA","Fed","Federal Deposit Insurance Corporation","Federal Open Market Committee","Federal Reserve","FOMC","FREE","FTSE 100","FTSE 250","FTSE100","futures","Goldman Sachs","household","HSBC","HSBC Holdings","Inflation","investors","Jeremy Hunt","Legal & General","lending","Lloyds Banking Group","London","midcap index","NatWest Group","Ofgem","pandemic","price cap","Prime Minister","program","Prudential","Qatar","Regulators","Rishi Sunak","SEC","Serious Fraud Office","share","Share Talk","ShareHolders","silicon valley","Silicon Valley Bank","SIVB","SVB","The Bank of England","Traders","Treasury","UK","Underground","US Federal Reserve","US interest rates","USA","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/12/stencboe17522il.default-750x406-1.jpg?fit=750%2C406&ssl=1","format":"news","language":"en-GB","content":"Financial markets anticipate that the Bank of England will lower interest rates by a full percentage point to 4.25% in the upcoming year.\n\nFollowing data indicating the economy contracted in October, market participants are wagering on four rate cuts in 2024.\n\nExpectations are now set for a decrease from the current 15-year peak of 5.25% to 4.25% by the end of next year.\n\nMoreover, traders foresee the Bank of England commencing the reduction of borrowing costs from these 15-year highs by May, an advancement from the previously predicted June start.\n\nThis shift in expectations arises as authorities are urged to stimulate the economy, especially after the Office for National Statistics reported a 0.3% decline in the UK’s gross domestic product (GDP) for October.\n\nIn light of these developments, major Wall Street institutions like Goldman Sachs and JP Morgan have revised their UK growth projections downwards.\n\nThe Bank of England is scheduled to make its forthcoming interest rate announcement this Thursday."}