“UK interest rate forecast” from Goldman Sachs

Goldman Sachs expects the Bank of England to respond to the depreciation of the Sterling with aggressive rate hikes.

it stated that the British economy is experiencing a serious negative external shock due to high energy prices, which puts pressure on the growth outlook and causes the pound to weaken.

Goldman Sachs, which expects the pound to weaken a little more against the US dollar in the near future and decline to the level of 1.05, emphasized that the Bank of England (BoE) will hold an interim meeting and make a major interest rate hike.

Stating that their main expectations are for a more hawkish stance in the November meeting of the BoE, Goldman Sacns stated that they expect the BOE to increase interest rates by 100 basis points in the November and December meetings.

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