Goldman Sachs analysts released a research note discussing their expectations regarding the number of times the Bank of England will lower interest rates in the years 2025 and 2026, suggesting that the British central bank is likely to cut the interest rate 6 times by mid-2026. Goldman Sachs attributed its expectations to indicators of weakness in the Consumer Price Index (CPI) in the UK—inflation—in the medium term, based on the following: - A significant slowdown in economic growth in the UK, which is expected to continue, with projections for growth at only 0.9% in 2025. - A potential slowdown in real disposable income growth for households. - Increasing trade tensions that might impact economic activity within the UK. - Weakness in the labor market, which will slow wage growth. Based on these possibilities, Goldman Sachs anticipated that the Bank of England would reduce the interest rate to 3.25% by mid-next year.
Companies
Related Posts
Companies
Nick Molinari Joins JPMorgan Chase as Vice President, Treasury Management Officer
Thursday 30th January 2025
Companies
Veeral Kanji Joins Global Infrastructure Partners as Managing Director
Thursday 30th January 2025Commnets
