Goldman Sachs said on Tuesday it now expects the Bank of England (BoE) to trim rates by 25 basis points in November, revising its September forecast of a pause through 2025 before easing begins in 2026, citing sticky inflation and a softening labour market.
UK consumer inflation stood at 3.8% in September – nearly double the BoE’s 2% target – fuelling bets for a November rate cut.
The Wall Street brokerage now anticipates that the BoE will cut rates quarterly to 3% by July 2026, earlier than its previous projection of November 2026, from the current 4%.
Top brokerages, including Goldman Sachs and Morgan Stanley, had earlier expected no further rate cuts this year after the BoE left its key rate unchanged in September.
(Reporting by Joel Jose）
