ICYMI - Goldman Sachs brings forward its BOE rate cut forecast to May from June previously

Justin had the news on this forecast revision from the investment bank:

• Goldman Sachs brings forward BOE rate cut to May from June previously

It came after data from the UK showed inflation in November hit its lowest rate in over two years:

• UK November CPI +3.9% vs +4.4% y/y expected
• First BOE rate cut now priced in for May next year
• Sterling falls as UK CPI data vindicates market posturing on rate cuts

Goldman Sachs expect:

• interest-rate cut by the Bank of England in May from June
• while maintaining the size of cut at 25 basis points per meeting until the policy rate reaches 3% in May 2025.