Bank of England to cut rates faster than expected, says Goldman Sachs

Via a note from Goldman Sachs over the weekend on their expectations for the Bank of England next year:

  • Bank of England first 25 bp rate cut in August
  • to be followed by similar decreases made at each policy meeting until the Bank rate reaches 3% in mid-2025,

Prior to this Goldman Sachs were projecting one rate cut per quarter.

GS cite theeir reasoning for expecting quicker cuts now

  • a quicker decline in inflation
  • quicker pace is more in line with historical cutting cycles
  • also expect ECB easing

This article was written by Eamonn Sheridan at www.forexlive.com. Source