Goldman Sachs has stated that they don’t anticipate the Bank of England to push interest rates beyond 5.5pc, as the financial institution adjusted its predictions for UK borrowing costs downward.
This Thursday, a 0.25 percentage point increase in interest rates is anticipated by economists from Goldman Sachs.
Yet, in contrast to their previous predictions of a final surge to 5.75pc, they now believe the Monetary Policy Committee (MPC) will maintain the rates at the subsequent November meeting.
Sven Jari Stehn, an economist, commented, “For the upcoming November session, we foresee a higher likelihood that sequential wage and pricing pressures will have subsided enough, allowing the MPC to pause, especially given their inclination for a more levelled peak.”
From 0.1pc in 2021, the Bank of England has consecutively hiked the interest rates in 15 meetings, reaching 5.25pc. Only this past summer, the financial markets had foreseen a peak rate of 6.5pc.
However, recent data illustrating a decrease in inflation has alleviated concerns regarding the economy’s insensitivity to the Bank’s measures.
