Goldman Sachs expect a Bank of England 25bp rate cut in August (previously tipping June)

While the UK PM has leapt into action to call an early election:

He may have jumped from the frying pan into the fire. Goldman Sachs is tipping no help for Sunak from the Bank of England, changing its forecast from a June rate cut to August now.

  • Given firmer incoming price and wage data, we no longer expect a June Bank Rate cut.
  • First, services inflation came in at 5.9% year-on-year in April, well ahead of consensus expectations and the MPC‘s May projection of 5.5% year-on-year.

GS are not alone in switching away from a June forecast.

I’m digging out more on this.

ICYMI, the UK inflation data is here from earlier this week:

This article was written by Eamonn Sheridan at Source