{"id":114511,"title":"Goldman Sachs predicts the Bank of England will lower interest rates in August.","publisher":"Share Talk","author":"sharetalk","published":"2024-05-22T16:25:01+00:00","modified":"2024-05-22T16:25:01+00:00","canonical_url":"https://www.share-talk.com/goldman-sachs-predicts-the-bank-of-england-will-lower-interest-rates-in-august/","markdown_url":"https://www.share-talk.com/goldman-sachs-predicts-the-bank-of-england-will-lower-interest-rates-in-august.md","json_url":"https://www.share-talk.com/goldman-sachs-predicts-the-bank-of-england-will-lower-interest-rates-in-august.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["BANK","Bank of England","banking","BARC","Barclays","Benchmark","BoE","buyback","Chancellor","childcare","CME Group","consumers","Coverage","CS Venkatakrishnan","domestic","energy bill","England","FCA","Fed","Federal Deposit Insurance Corporation","Federal Reserve","FREE","FTSE 100","FTSE 250","FTSE100","futures","Goldman Sachs","household","HSBC","HSBC Holdings","Inflation","investors","Jeremy Hunt","Legal & General","lending","Lloyds Banking Group","London","midcap index","NatWest Group","Ofgem","pandemic","price cap","Prime Minister","program","Prudential","Qatar","Regulators","Rishi Sunak","SEC","Serious Fraud Office","share","Share Talk","ShareHolders","silicon valley","Silicon Valley Bank","SIVB","SVB","The Bank of England","Traders","Treasury","UK","Underground","USA","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/02/dreamstime_s_15957678-1.jpg?fit=800%2C531&quality=89&ssl=1","format":"news","language":"en-GB","content":"Despite last month’s higher-than-expected inflation rates, major investment banks, including Wall Street’s Goldman Sachs and Paris-based BNP Paribas, forecast that the Bank of England will begin to reduce borrowing costs this summer.\n\nThis prediction follows the consumer prices index falling to its lowest level in nearly three years, from 3.2% to 2.3% in April, driven by a significant drop in energy prices.\n\nHowever, the markets were unsettled by the less-than-anticipated decrease in services inflation, which only fell slightly from 6% to 5.9%. This metric is particularly significant to the Bank of England.\n\nhttps://twitter.com/Share_Talk/status/1793209497093104056\n\nConsequently, traders have adjusted their expectations for interest rate reductions, shifting from as early as June to potentially as late as November, with only one cut anticipated this year.\n\nOriginally, both Goldman Sachs and BNP Paribas had anticipated the initial reduction in June, but they have now adjusted this forecast to August.\n\nAccording to Goldman analyst Sven Jari Stehn, this delay will allow for two additional rounds of inflation and labour market data, which they believe will demonstrate progress on inflation."}