We’re keeping our eyes on the horizon as leading economists predict significant shifts in the UK interest rates. The Bank of England is anticipated to cut the base rate to approximately 3% by late 2025, marking a potential change in the financial landscape.
According to Morgan Stanley analysts, we might witness a rate cut as early as May, with rates potentially dropping to 4.25% by the end of the next year. This forecast, while representing a substantial decline from the current 5.25%, mirrors a trajectory akin to “rising like a rocket and falling like a feather.”
Goldman Sachs takes the boldest stance, suggesting a rate cut as early as February. With inflation expected to decrease in the coming months, the core reason for previous rate hikes diminishes, possibly prompting the Bank of England to reconsider further increases. As we navigate these financial currents, stay tuned for updates on how these forecasts may shape the property landscape.