Inflation & Prices

UK Economists Upgrade Outlook With BOE Seen Cutting Rates in May

Goldman and Bloomberg Economics predict stronger 2024 growth
Improved prospects in second half set stage for UK election

An economic rebound could help Prime Minister Rishi Sunak’s Conservative Party. — An economic rebound could help Prime Minister Rishi Sunak’s Conservative Party.
Photographer: Hollie Adams/Bloomberg

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By Philip Aldrick and Tom Rees

January 4, 2024 at 9:00 AM UTC

Updated on

January 4, 2024 at 10:21 AM UTC

This article is for subscribers only.

Britain’s economic prospects brightened with a pickup in lending and two prominent forecasters anticipating stronger growth and rate cuts early this year.

Goldman Sachs and Bloomberg Economics both upgraded their outlook for growth and predicted the Bank of England will reduce borrowing costs starting in May. The central bank released figures showing a jump in mortgage approvals and consumer borrowing and a slower decline in money supply.