Goldman Sachs Delays Bank of England Rate Cut Forecasts

The Goldman Sachs Group, Inc. has pushed back its interest rate forecast for the United Kingdom for the second time this month, citing inflation risks linked to rising energy costs. The investment bank now expects the Bank of England to implement three 25-basis-point cuts, specifically in July and November of 2026, and a final cut in February 2027. While a reduction at the April 30 meeting remains possible if energy shocks dissipate, the firm noted that a delay is more probable. > Policymakers are more likely to wait for clearer data. The revised outlook reflects the inflationary impact of higher energy prices across Europe, which is expected to maintain a cautious stance within the Monetary Policy Committee. This trend is mirrored by other financial institutions, as Standard Chartered PLC and Morgan Stanley have also delayed their easing forecasts. Both banks now project the first rate cut to occur in the second quarter, as geopolitical tensions in the Middle East continue to elevate inflation risks. Goldman Sachs anticipates that the bank rate will ultimately settle at 3% by early 2027. However, the brokerage cautioned that in an adverse economic scenario, the committee might deliver only one rate cut this year, or potentially none if conditions worsen further.