London, Feb 17, 2026, 13:07 GMT — Regular session
- Lloyds slipped roughly 0.4% in London, trailing behind as markets leaned harder into the idea of rate cuts.
- March rate cut odds from the Bank of England got a boost after the latest UK jobs and wage numbers—a negative for bank margins.
- Lloyds is under the microscope for its handling of employee account data; the bank is also pressing on with its share buyback.
Shares in Lloyds Banking Group slid 0.4% to 101.0 pence as of 13:04 GMT on Tuesday, with traders ramping up bets on a possible rate cut in the UK this spring. 1
Lloyds, with its heavy UK focus, finds its profits closely tied to Bank of England moves—net interest income is key here, since that’s what the bank nets between what it charges borrowers and pays depositors. After the latest labour market data, traders bumped up the odds of a March quarter-point rate cut to about 80%, from 65% just the day before. One ING economist summed it up: the report leaves things “firmly on track for a March rate cut”. 2
Economists polled by Reuters are also leaning toward a rate cut in March, with most calling for a 25 basis point trim—taking it to 3.50%—when the Bank of England meets on March 19. Deutsche Bank’s chief UK economist, Sanjay Raja, continues to anticipate a cut that month, and he sees another one on the table before year-end. 3
Currency markets echoed the trend. “This is yet another soft labour market report,” Aberdeen deputy chief economist Luke Bartholomew said, pointing to “a clear case” for a rate cut when the Bank meets in March. 4
A bit of company chatter surfaced as well. Lloyds is looking into how it handled staff account data in the middle of pay negotiations, with CEO Charlie Nunn telling employees the situation “obviously has created some concern” and insisting the bank “definitely have listened to it,” the Guardian reported. 5
The group also reported snapping up 11 million ordinary shares on Feb. 16, executing the buyback through broker Goldman Sachs International at a volume-weighted average price of 101.5415 pence. Those shares will be cancelled, it said. 6
Lloyds put out a supplementary prospectus tied to its £25 billion Euro Medium Term Note programme, according to a regulatory filing, following a green light from the Financial Conduct Authority. 7
Rate-watchers have their eyes on March 19, when the Bank of England makes its next policy call. 8
But first, watch for January’s UK inflation numbers, set for release Wednesday at 0700 GMT. The figures could jolt forecasts on both the speed and scale of rate cuts. 9
Still, there’s a wrinkle here. UK inflation clocked in at 3.4% back in December, keeping it over the BoE’s 2% goal. If price data pops higher, investors could rethink rate-cut wagers fast, and bank stocks might catch a lift. 10
On the corporate calendar, eyes are turning to Lloyds’ next Q1 interim management statement set for April 29. 11
