London, June 18, 2026, 10:10 BST
- Barclays slipped 0.7% to about 499.75 pence, giving up some ground after a 3.4% rise on Wednesday.
- BofA Global Research bumped up its price target and forecasts, pointing to a stronger-than-expected operating climate.
- The Bank of England is set to announce its latest decision at noon. The Bank Rate stands at 3.75%.
Barclays PLC shares slipped on Thursday. The stock pared some of the last session’s broker-fueled rise as traders waited for the Bank of England’s rate move. Delayed prints showed Barclays off 0.7% at 499.75 pence at 09:54 BST. The FTSE 100 was down 0.9% to 10,416.62, according to data as of 09:32 BST.
Barclays shares pulled back after a 3.4% surge on Wednesday that saw the stock finish at 503.50 pence, among the FTSE 100’s top moves. BofA Global Research lifted its price target, giving banks a boost. That helped the index eke out a 0.14% gain. “For the investor it is a dilemma; good news for the economy’s resilience is bad news as it justifies a rate hike,” said Webull UK Chief Executive Nick Saunders. Reuters
Bank of England decision is expected at 12:00 BST. Most in the market expect no change, with the Bank Rate likely stuck at 3.75%. The split in the vote and hints about what comes next will be in focus. Higher rates can help banks’ margins between loans and deposits, but they also hit borrowing and can lift defaults.
UK inflation didn’t budge in May, staying at 2.8%, according to new data, missing the 3% economists told Reuters they expected. Joblessness came in at 4.9% between February and April. That’s lower than the prior quarter, but up compared to last year.
Barclays still faces shifting global rates, which affect its investment bank and U.S. consumer units. The Fed kept rates steady Wednesday, but nine officials penciled in a hike this year. Traders put the odds of a September move close to 50%. “If oil prices remain contained, we do not see inflation expectations moving higher,” Jefferies economist Mohit Kumar said. Reuters
Barclays jumped 3.4% on Wednesday, outpacing Lloyds Banking Group, up 1.7%, and NatWest, which gained 1.5%. The gap suggests Barclays’ surge was tied to the BofA research change, not just a lift for the banking sector.
Barclays’ first-quarter numbers offer some backing for the broker’s view. Return on tangible equity came in at 13.5%. Income was up 6% at £8.2 billion. The core Common Equity Tier 1 capital ratio was 14.1%. Barclays also said it would launch a £500 million share buyback. CEO C.S. Venkatakrishnan said the group is “vigilant about the external environment.” LinkedIn
But the re-rating isn’t locked in. If rates really do stay higher for longer, that could help loan pricing, but it would also hit demand and put more pressure on borrowers. If policy gets looser, lending spreads could tighten. Barclays reported £823 million in credit impairment charges for the first quarter, with £228 million from a single name in its investment bank, and is guiding for its 2026 loan-loss rate to run near the high end of its 0.50%-0.60% through-cycle range.
