ChainCatcher reports that Goldman Sachs expects the Bank of England to vote 7 to 2 to keep interest rates unchanged, providing no clear guidance on the path ahead. They expect the APF to be reduced by £100 billion. They also anticipate a series of interest rate cuts from November 2024 to August 2025, bringing rates to 3.00%, with a probability of 40% for this base case scenario. This marks an adjustment from their previous forecast of a rate of 3.00% by August 2026.

Goldman Sachs highlights three key reasons for this revised outlook:

1. Increased confidence in a significant slowdown in wage growth in the coming months.
2. The potential for a notable acceleration in inflation in 2025.
3. The simple Taylor rule pointing towards a quicker normalization, along with the expectation of continued interest rate cuts by most developed central banks.