Economics
Goldman, BofA See U.K.’s Perfect Storm Prompting More BOE Action
- Unemployment surge and Brexit present major risks for economy
- Money markets are pricing in a cut to zero by February
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Wall Street economists are increasingly predicting the Bank of England will take further action to revive growth in coming months as the U.K. recovery from the coronavirus recession proves lackluster.
Economists at Goldman Sachs Group Inc. say policy makers may signal in August that interest rates could turn negative, while BofA Global Research expects them to cut the benchmark rate to zero from 0.1% as unemployment worsens and the inflation outlook weakens.