London, Feb 18, 2026, 09:27 GMT — Regular session
- Barclays shares pushed higher early in the London session
- Traders zeroed in on buybacks alongside speculation around UK rates.
- Dividend timing is in focus for traders, along with the upcoming Bank of England decision.
Barclays PLC climbed 1.6% to 481.55 pence as of 0926 GMT, moving in a range from 474.70 to 484.15. On Tuesday, the shares finished at 473.95 pence.
This shift turns attention once more to the pair of factors steering UK bank stocks lately: capital returns and where interest rates are headed. Both issues are front and center again this week.
Buybacks cut down the number of shares out there, often putting a floor under the stock when markets get shaky. As for rates, they ripple through loan demand and squeeze—or fatten—the margin banks can make on fresh lending.
Barclays purchased 2.68 million ordinary shares for cancellation on Feb. 17, paying prices that ranged from 459.80 pence up to 473.25 pence. According to the bank, the volume-weighted average price worked out to 466.29 pence.
UK inflation dropped to 3.0% in January, down from 3.4% a month earlier and exactly in line with what economists had expected, according to official figures released Wednesday. Core inflation slipped to 3.1%. Services inflation, a key metric for the Bank of England, barely moved, ticking down to 4.4%. “Given almost all the survey measures of prices suggest disinflation has slowed, the MPC will still have to be cautious this year,” said Thomas Pugh, chief economist at RSM UK. Reuters
Most economists surveyed by Reuters now see the Bank of England trimming its Bank Rate by 25 basis points to 3.50% on March 19—a basis point amounts to one-hundredth of a percent. Deutsche Bank’s Sanjay Raja isn’t changing his forecast: “We stick to our call for the next Bank Rate cut to come in March and a final rate cut to come in June,” he said. Reuters
The trend doesn’t just run in a single direction. Quicker rate cuts can pinch margins on fresh loans, and a weaker economy pushes up credit losses. Pulling back on buybacks? Bank stocks usually feel that almost immediately.
Barclays investors face an ex-dividend date on Feb. 19 for a final payout of 5.60 pence per share, set for distribution March 31. Once shares go ex-dividend, they’re traded without the dividend entitlement, which typically prompts a price adjustment around that point.
