Goldman Sachs has forecast that the Bank of England will reduce interest rates to 2.75% by November 2025, much faster than market expectations.

Goldman Sachs has forecast that the Bank of England will reduce interest rates to 2.75% by November 2025, much faster than market expectations. The investment bank highlighted that the current 5% interest rate is “notably restrictive,” and with inflation declining more rapidly than anticipated, monetary policy is expected to ease. Analysts predict that rates will fall below the 3.5% level currently priced in by money markets, as inflation dropped to 1.7% in September, accompanied by dovish signals from the Monetary Policy Committee. If correct, the Bank could execute quarter-point cuts at its next nine meetings, offering relief to mortgage borrowers impacted by recent rate hikes.