The US investment bank argued that Bank Rate would fall to as low as 2.75 per cent by November next year, whereas it had previously expected the terminal rate to be three per cent.

The investment bank's economists suggest the current base rate of 5 percent will come down to as low as 2.75 percent by November next year.

Average wage rises have slowed to a two-year low isn't good news for cost of living hit workers but does make a Bank of England interest rate cut next month much more likely

Interest rates are on course to fall to 2.75% by next autumn after the Bank of England reduces the cost of borrowing at each of its nine next meetings, a leading investment bank has predicted. Economists at Goldman Sachs said that,

Economists at the Wall Street giant believe the Bank of England will cut more sharply than suggested by market pricing, which points to rates falling to 3.5%.

The drop in rates will be welcome news to mortgage borrowers who have had a tough couple of years, although savers will be hit again