Goldman Sachs gives its view on UK interest rate expectations
Goldies is saying that rate cuts are almost off the table regarding continued falling prices and that the BOE will more likely push back the time they do raise. That puts their forecast of Q4 2015 at risk of being moved further back
They also say there's very little risk in the BOE changing rates in the run up to the election
Recent comments from various BOE members that they could cut just as easily as raise rates have been overblown and I don't believe that there are many who would think that they would cut. We're facing low prices the same as the next man but it's still imported prices not domestic and that' the main concern for the BOE
We wore inflation above target for over 4 years without being able to do diddly squat about it and we can do the same while it's below, as long as the domestic price picture is looking fine
