Goldman Sachs: It is expected that the Bank of England will cut interest rates six times by the middle of 2026.

On January 29th, Jinshi Data reported that Goldman Sachs analysts said that despite the current high inflation pressure, they see signs that the outlook for the mid-term CPI in the UK seems to be softening. The reasons are as follows: 1. The UK economy is rising significantly weakened, and if this situation continues, it is expected that the rise in 2025 will only be 0.9%; 2. Household disposable income may rise more slowly; 3. Escalating trade tensions may drag down economic activity; 4. Escalating trade tensions may drag down economic activity. Goldman Sachs said that although the UK Central Bank may slow down the pace of interest rate cuts if potential inflation fails to make progress, they believe that in order to cope with weak demand, the Central Bank is actually more likely to accelerate the pace of continuous interest rate cuts. Goldman Sachs predicts that the UK Central Bank’s next meeting in February will cut interest rates by 25 basis points, and by the middle of 2026, the UK Central Bank’s Interest Rate will be reduced to 3.25%.