Goldman Sachs (NYSE:GS) has brought forward its forecast for the first cut in UK interest rates following today's inflation figures.
The investment bank noted the November inflation print showed services, core and headline inflation surprising consensus and Bank of England expectations meaningfully to the downside.
Taken together with the sharp slowing in sequential wage growth observed last week, Goldman has pulled forward its first BoE cut to May compared to June before.
"We continue to expect the MPC to cut at a 25bp per meeting pace until the policy rate reaches 3.0% in May 2025," it said.
The revised forecast came as inflation hit its lowest level since September 2021, sparking a rally in equities and a drop in the pound as traders ramped up bets for interest rate cuts in 2024.