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Goldman Sachs sees BoE rate cut in December, further easing ahead

ReutersNov 6, 2025 4:34 PM

- Goldman Sachs expects the Bank of England to trim rates in December after the central bank left borrowing costs unchanged on Thursday, but Governor Andrew Bailey acknowledged that inflation risks have reduced.

Goldman Sachs, which had expected the BoE to cut rates by 25 basis points on Thursday, moved its forecast for a similar-sized rate reduction in December.

The brokerage anticipates the central bank will continue easing, projecting a terminal rate of 3% by July 2026, if inflation continues to cool.

The BoE's Monetary Policy Committee voted narrowly to hold the Bank Rate at 4%, with Bailey hinting that upcoming economic data and the impact of the Autumn Budget could pave the way for a rate cut at the next meeting.

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