UK Outlook 2025: A Gradual Pace, but More Cuts Than Priced

The recent UK macroeconomic news points to more near-term growth and inflation, according to our European economists in Goldman Sachs Research. They continue to think that the BoE will ultimately cut further than the current market pricing of 4% for the terminal rate. Overall, they expect annual GDP growth of 1.2% in 2025, three-tenths below the BoE's latest forecasts.

• UK Outlook 2025

  A Gradual Pace, but More Cuts Than Priced