I think the best days for Lloyds’ share price are over. Here’s why
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Lloyds Banking Group (LSE:LLOY) shares have been on an incredible rally in recent years. Over the past year alone, the Lloyds’ share price is up 70%. At the highest level in over a decade, investors have been cheering it all the way. However, I have growing concerns about why this can’t be sustained forever. Let me explain.
Lower net interest margin
The Bank of England committee is likely to cut interest rates at the meeting on Thursday (18 December). More than that, it’s likely we’ll see at least two more rate reductions in 2026. This is a negative for Lloyds’ share price. The lower the base rate, the smaller the net interest margin is. This refers to the difference between the…
