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2025-12-14 21:57:05
[Goldman Sachs: Internal Disagreements Exist within the Bank of England; Governor Bailey May Cast the Decisive Vote] Financial markets have almost surmised that the Bank of England will cut interest rates at its meeting next Thursday. Goldman Sachs economist James Moberly expects that the Bank of England's chief economist, Peale, and external members Green and Mann will vote to keep rates unchanged. He believes this camp may grow, with Deputy Governor Lombardy possibly joining as well, depending on subsequent data. Governor Bailey may play a decisive role in the nine-member committee. Since November, the minutes of the Monetary Policy Committee meetings have included paragraphs summarizing each member's personal views. Moberly expects Bailey to acknowledge the recent weakness in the labor market and hint at further easing if the data meets expectations. Many economists expect no major changes to the formal guidance. The Bank of England will reiterate that interest rates may gradually decline, but may emphasize that future decisions depend on data, and will also point out that as policy approaches the so-called "neutral rate," the threshold for further rate cuts will be higher.
