Goldman Sachs expects the Bank of England to vote 7-2 in favor of keeping interest rates unchanged with no clear guidance on the future path. The expected scale of APF reduction is 100 billion pounds. It is anticipated that consecutive rate cuts from November 2024 to August 2025 will bring the rate to 3.00%, with a 40% probability in this base scenario, compared to the previous forecast of reaching 3.00% by August 2026. Goldman Sachs highlights three reasons for adjusting expectations, including increased confidence that wage growth will significantly cool in the coming months, the possibility of accelerated inflation progress in 2025, the Simple Taylor Rule pointing towards faster normalization, and the likelihood of consecutive rate cuts by most major central banks. (Jinshi)

Odaily Planet Daily News: Goldman Sachs predicts that the Bank of England will vote 7 to 2 in favor of maintaining the interest rate unchanged, with no clear guidance for the future path. It is expected that the APF reduction scale will be 100 billion pounds. The continuous rate cuts from November 2024 to August 2025 are expected to bring the interest rate to 3.00%, with a 40% probability in this base scenario, compared to the previous forecast of reaching 3.00% by August 2026. Goldman Sachs cited three reasons for adjusting expectations, including increased confidence in the significant cooling of wage growth in the coming months, the possibility of accelerated inflation progress in 2025, the simple Taylor rule pointing to faster normalization, and the consecutive rate cuts by most central banks in developed countries. (FX678)

Goldman Sachs: Bank of England Expected to Keep Rates Steady, Interest Rates to Drop to 3% Sooner