Goldman Sachs expects Bank of England hold at the June meeting

Goldman Sachs now expects BoE to hold interest rates at the June meeting (Thursday, 19 June) vs prior forecast of a 25 bp cut.

• Expects BoE to cut rates at every meeting from August 2025 and reach 2.75% terminal rate in March 2026

The Bank cut yesterday:

• BOE cuts bank rate by 25 bps to 4.25%, as expected
• BOE governor Bailey: Interest rates are not on auto-pilot
• BOE governor Bailey: Don't know what to expect from UK-US trade deal for now