UK interest rates 'could fall as low as 2.75% in the next year', Goldman Sachs predicts

Goldman Sachs projects the UK's base rate could drop to 2.75% by November 2025, driven by progress on disinflation and dovish signals from policymakers.

While markets expect a gradual decline to around 3.5%, Goldman Sachs believes the Bank of England will lower rates more aggressively as inflation eases.

The Bank's Monetary Policy Committee has differing views; Bailey suggests potential aggressiveness if inflation stabilizes, while Huw Pill prefers a gradual approach.

The UK inflation rate has unexpectedly dropped to 1.7%, increasing expectations for the Bank of England to ease monetary policy in the near future.

Read at Business Matters