The UK 10-year gilt yield edged down to below 4.49%, the lowest in about two weeks, after the Bank of England cut the bank rate by 25 basis points at its final meeting of the year, in line with expectations. The vote split was also as anticipated, at 5–4, with Governor Andrew Bailey backing a cut this time. Policymakers reiterated their guidance for a “gradual” pace of further easing, while noting that future decisions would be more finely balanced. Markets are now pricing in about 62 points of easing from the central bank by the end of next year, compared to about 66 points before the decision. The rate cut, which followed pauses in September and November, comes amid easing inflation and growing signs of economic strain. UK annual inflation slowed to 3.2% in November, its lowest level in eight months and below the BoE’s 3.4% forecast. Meanwhile, GDP contracted for a second consecutive month in October, and private-sector wage growth continued to moderate.