Analyst: Due to the sluggish UK labor market, the Bank of England may cut interest rates by the end of 2026.

Analysts at the Yu Xin Investment Research Institute under the Yuxin Group stated in a report that, given the continuous deterioration of the employment market in the UK, the Bank of England may cut interest rates by the end of 2026. The latest labor market data shows a decrease in the unemployment rate in the UK, but the growth rate of average wages has also slowed down. These analysts suggest that the weak labor market is expected to ease upward inflationary pressure, allowing the Bank of England to cut interest rates. Data from the London Stock Exchange Group shows that investors expect the Bank of England to raise interest rates twice in 2026, with a 16% chance of a third rate hike.