Goldman Sachs is forecasting an initial rate cut from the Bank of England in June 2024

<p>Goldman Sachs does not appear to be convinced by Bank of England Governor Bailey's attempt at continued hawkishness on Thursday:</p><p>Justin had the news on the Bank of England maintaining its policy rate at 5.25%, which was as expected:</p><ul><li><a href="https://www.forexlive.com/centralbank/boe-leaves-bank-rate-unchanged-at-525-as-expected-20231214/" target="_blank">No pivot. That's the main takeaway at first glance when viewing the BOE statement</a></li></ul><p>And also on Bank of England Governor Bailey speaking:</p><ul><li><a href="https://www.forexlive.com/centralbank/boes-bailey-we-cannot-say-that-interest-rates-have-peaked-20231214/" target="_blank">We cannot say that interest rates have peaked</a></li></ul><p>I posted today that <a href="https://www.forexlive.com/centralbank/bank-of-england-holds-policy-rate-amidst-hawkish-tone-gbp-rises-20231214/" target="_blank" rel="follow">market pricing is for a May rate cut</a>. Goldman Sachs are not the only ones unconvinced on Bailey's swagger.</p><p>GS see a first cut in June next year, then:</p><ul><li>"We expect the MPC to cut at a 25bps per meeting pace until policy rates reach 3.0% in June 2025,"</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.