Goldman Sees Faster Pace of ECB, BOE Rate Cuts on Weaker Growth
- Bank cuts ECB terminal rate forecast by quarter point to 2%
- Firm sees consecutive BOE rate cuts starting in November
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Goldman Sachs says weaker economic growth will lead both the European Central Bank and the Bank of England to cut interest rates at a faster pace than it previously expected.
The bank now sees the ECB delivering consecutive rate reductions starting in December, as opposed to one every other meeting, and lowered its terminal rate forecast by a quarter point to 2%, Jan Hatzius, chief economist at Goldman, wrote in a note.