The first meeting of the Market Participants Group (MPG) took place on November 12, 2025, at the Bank of England. This senior-level forum allows financial market participants to share their insights with members of the Bank of England’s Monetary Policy Committee (MPC). The session was held from 5:30 pm to 7:00 pm.
Governor Andrew Bailey welcomed attendees and emphasized that the MPC would be in a listening mode, adhering to competition and conduct laws. Discussions began with international developments, where participants expressed concerns about inflation surprises and their potential impact on global interest rates. The growth in equity valuations driven by artificial intelligence was debated for its sustainability and implications for capital expenditure and consumer spending. There were varied opinions on how tariffs, trade policy uncertainty, and trade diversion might affect global growth and inflation.
Participants also considered how these international risks could influence the UK economy, noting that changes in global yields could impact UK bond markets. A significant drop in equity valuations or increased trade tensions could affect global activity and have domestic repercussions.
On domestic matters, reactions to the November MPC meeting were discussed. The outcome was largely anticipated, leading to adjustments in market pricing for upcoming meetings while maintaining an overall stable profile of market rates. Attendees appreciated the new format of individual MPC member paragraphs in the minutes for adding clarity to different perspectives.
There was a mix of views on the macroeconomic outlook; some saw a more benign inflation outlook while others anticipated ongoing persistence. This influenced perceptions of policy restrictiveness and the neutral rate. There was consensus on potential weakening in growth and employment but with varying degrees of conviction.
The upcoming Budget was identified as a key focus for financial markets, with discussions on its potential effects on rates and currency markets already factored into market pricing.
Attendees included representatives from Nomura, BlackRock, Rokos Capital Management, Citadel LLP, JP Morgan Asset Management, Balyasny Asset Management along with MPC members like Sarah Breeden and Megan Greene.
Information from this article can be found here.
