International - Financial Times - Credit Squeeze

The Bank of England cut rates as expected and signalled further easing to come in 2026

Powerful forces look poised to reignite growth at a time when economies are close to capacity

Read the December forecast from the FT’s Monetary Policy Radar team

Also in today’s newsletter: EU leaders agree to lend Ukraine €90bn and TikTok’s new US joint venture

Central bank dashes hopes of strong recovery from debt-funded spending spree

Yields on 10-year government bonds hit highest level since 1990s after central bank’s fourth rate increase

Some rate-setters believe inflation is already at target, while the decision underscores more tightening is ahead

Move comes after Italian prime minister pleads for more time from Brazilian president

Plus, Trump in Venezuela

A stalled economic conveyor belt is behind the rise of anti-system, anti-growth parties on both the right and left

White House hails figures showing cooling price growth but Wall Street says report was ‘a mess’

Concerns that November figures showing fall to 2.7% distorted by missing data after shutdown

What can we learn from new figures about jobs, inflation and leverage?

Decision follows signs of Eurozone resilience to Trump’s tariffs 

Weaker than expected inflation pushes up odds of further Fed easing

Andrew Bailey signals caution on further cuts even as central bank responds to signs of slowing economy

New forecasts show that policymakers expect firmer growth and inflation at target in the medium term

Tight vote disguises a consensus in favour of further monetary easing in 2026

Also in today’s newsletter: Trump’s address to the nation and Lula threatens to sink Mercosur trade deal

Its disjointed response to electric vehicles shows it cannot co-ordinate