Goldman Sachs and Bloomberg Predict Faster Pace of BoE Rate Cuts Starting in August to Combat Inflation and Weak Growth
• Goldman Sachs forecasts the Bank of England will start cutting rates from August, initially by 25 basis points • Cuts are expected at each subsequent policy meeting until rates reach 3% by mid-2025 - a quicker pace than previously expected • Bloomberg Economics also forecasts an August cut as the BoE balances inflation and weak economy • Significant uncertainty remains - 30% chance rates stay at 5.25% through 2024 if inflation persists • First rate cut expected in August, then one cut per meeting until 3% by mid-2025 (previously one per quarter)