On November 8, Barclays revised its forecast regarding the Bank of England's upcoming December meeting, now expecting the central bank to maintain interest rates. This adjustment comes after the Bank of England's recent decision to cut rates for only the second time since 2020, highlighting ongoing uncertainty surrounding the fiscal package and the labor market.
Barclays indicated that the cautious tone of the central bank suggests a gradual approach to future rate adjustments. It anticipates a 25 basis point cut in February 2025, followed by further reductions throughout the year, which would bring the terminal rate down to 3.50%.
In a separate financial update, IAG SA, the parent company of British Airways, reported third-quarter earnings that surpassed expectations, driven by increased demand for trans-Atlantic flights. The company recorded an operating profit of over €2 billion, reflecting a 15% rise compared to the previous year, while quarterly revenue reached €9.33 billion ($10.1 billion), exceeding analyst predictions.