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

Odaily Planet Daily News Goldman Sachs analysts said that although inflationary pressures are currently high, they see signs that the outlook for the UK's medium-term CPI looks to be weakening, citing the following reasons: 1. UK economic growth has weakened significantly, and if this continues, growth is expected to be only 0.9% in 2025; 2. Household real disposable income growth may slow; 3. Increased trade tensions may drag down economic activity; 4. Increased trade tensions may drag down economic activity. Goldman Sachs said that while the Bank of England is likely to slow down the pace of rate cuts if potential inflation fails to make progress, they believe that the central bank is actually more likely to speed up the pace of consecutive rate cuts in response to weak demand. Goldman Sachs expects the Bank of England to cut interest rates by 25 basis points at its next meeting in February, bringing the Bank of England's interest rate to 3.25% by mid-2026. (Jinshi)