Goldman Sachs: The Bank of England is expected to cut interest rates six times by mid-2026

Odaily reports that Goldman Sachs analysts have stated that although inflationary pressures are currently high, they see signs that the outlook for the UK's medium-term CPI is softening, for the following reasons: 1) the UK's economic growth has clearly weakened, and if this continues, growth is expected to be only 0.9% in 2025; 2) growth in household real disposable income may slow; 3) escalating trade tensions may weigh on economic activity; 4) escalating trade tensions may weigh on economic activity. Goldman Sachs said that while the Bank of England may slow the pace of rate cuts if underlying inflation fails to make progress, they believe the Bank is actually more likely to accelerate the pace of consecutive rate cuts to address weak demand. Goldman Sachs expects the Bank of England to cut rates by 25 basis points at its next meeting in February, and the Bank's rate will fall to 3.25% by mid-2026. (Jinshi)