UK interest rates to fall to 2.75% by next autumn, Goldman Sachs predicts
by Larry Elliott Economics editor from Economics | The Guardian on (#6RMFW)
Economists at investment bank say markets are underestimating likely extent of action by Bank of England
Interest rates are on course to fall to 2.75% by next autumn after the Bank of England reduces the cost of borrowing at each of its nine next meetings, a leading investment bank has predicted.
Economists at Goldman Sachs said that, according to their assessment of the long-term level of interest rates consistent with achieving the government's 2% inflation target, markets were underestimating the likely extent of the action by Threadneedle Street's nine-strong monetary policy committee (MPC).
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