When will the Federal Reserve cut interest rates?

The Federal Reserve is expected to cut interest rates by 0.25 percentage points this week.

Will the Bank of England cut interest rates before Christmas?

The Bank of England is strongly tipped to cut interest rates on December 18, potentially before Christmas.

Why are central banks cutting interest rates?

Concerns about economic growth and jobs are outweighing worries about high inflation, prompting central banks to consider rate cuts.

Home / Business and Economy / Rate Cuts Coming: Fed & BoE to Ease Borrowing Costs

Rate Cuts Coming: Fed & BoE to Ease Borrowing Costs

8 Dec

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Summary

Federal Reserve likely to cut US interest rates by 0.25% this week.
Bank of England expected to follow with a UK rate cut on December 18.
Economic growth concerns outweigh inflation fears for both central banks.

Rate Cuts Coming: Fed & BoE to Ease Borrowing Costs

Anticipation is building on both sides of the Atlantic as the Federal Reserve and the Bank of England are poised to cut interest rates, offering potential early Christmas presents to borrowers. The US central bank is widely expected to announce a 0.25 percentage point reduction this Wednesday, bringing its key rate to a new range.

Following this, the Bank of England is strongly tipped to implement its own rate cut on December 18, lowering the UK's benchmark rate. This move would bring relief to millions with mortgages and businesses seeking more affordable loans, as growth and employment concerns are reportedly taking precedence over inflation.

Analysts are closely watching for any signals from central bank officials, including a key speech from Bank of England Governor Andrew Bailey. Future rate cuts for 2026 are also a focus, with market watchers predicting further reductions as economic conditions evolve.