London, Feb 17, 2026, 13:07 GMT — Regular session
- Lloyds shares were down about 0.4% in London trade, lagging as rate-cut expectations firmed
- UK jobs and wage data lifted bets on a March Bank of England cut, a headwind for bank margins
- Lloyds faces scrutiny over use of employee account data; it is also continuing a share buyback
Lloyds Banking Group shares slipped 0.4% to 101.0 pence by 13:04 GMT on Tuesday, with traders leaning harder into a spring rate-cut story in Britain. (Investing.com UK)
That matters for Lloyds because it is a mostly UK-focused lender, and its earnings are tightly geared to Bank of England policy through net interest income — the money a bank makes on the gap between lending rates and deposit costs. The latest labour market figures pushed investors to price roughly an 80% chance of a quarter-point rate cut in March, up from about 65% a day earlier, and one ING economist called the report “firmly on track for a March rate cut”. (Reuters)
A separate Reuters poll of economists also pointed to a March move, with most respondents looking for a 25 basis point cut (a basis point is 0.01 percentage point) to 3.50% on March 19. Deutsche Bank’s chief UK economist Sanjay Raja wrote that he still expects a March cut, followed by a further move later in the year. (Reuters)
Currency markets told the same story. “This is yet another soft labour market report,” said Luke Bartholomew, deputy chief economist at Aberdeen, adding there was “a clear case” for a cut at the Bank’s next meeting in March. (Reuters)
Company-specific noise also crept in. Lloyds is investigating its use of employee account data during pay talks, and CEO Charlie Nunn told staff the issue “obviously has created some concern” and that the bank “definitely have listened to it”, according to the Guardian. (The Guardian)
Separately, the group disclosed it bought back 11 million ordinary shares on Feb. 16 through broker Goldman Sachs International, paying a volume-weighted average of 101.5415 pence, and said it intends to cancel the shares. (Stockopedia)
Lloyds also published a supplementary prospectus related to its £25 billion Euro Medium Term Note programme — a debt issuance framework — after approval by the Financial Conduct Authority, a filing showed. (Investegate)
For rate-watchers, the next scheduled Bank of England decision is due on March 19. (Bank of England)
Before that, UK inflation data for January is due on Wednesday at 0700 GMT, a release that could swing expectations on how fast rates fall and how far. (Office for National Statistics)
There is a catch. UK inflation was running at 3.4% in December — still above the BoE’s 2% target — and any upside surprise on prices could jolt rate-cut bets and hand bank shares a quick bounce. (Office for National Statistics)
Beyond the macro, investors also have a company date in view: Lloyds’ next scheduled update is its Q1 interim management statement on April 29. (Lloydsbankinggroup)
