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Goldman Sachs Expects BCCh To Cut At Once-A-Quarter Pace To 4.5% By H225

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  • In Goldman Sachs assessment following today’s minutes, the BCCh adopted a more cautious stance in June in anticipation of what is foreseen to be a significant inflationary shock.
  • Overall, while GS expects the MPC to maintain a wait-and-see approach at upcoming meetings they see room for the central bank to proceed with cautious cuts as uncertainty over the magnitude of the impending inflationary shock resolves.
  • As such, GS expects the central bank to engage in a once-a-quarter easing cycle towards a terminal rate of 4.50% by the second half of 2025.
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  • In Goldman Sachs assessment following today’s minutes, the BCCh adopted a more cautious stance in June in anticipation of what is foreseen to be a significant inflationary shock.
  • Overall, while GS expects the MPC to maintain a wait-and-see approach at upcoming meetings they see room for the central bank to proceed with cautious cuts as uncertainty over the magnitude of the impending inflationary shock resolves.
  • As such, GS expects the central bank to engage in a once-a-quarter easing cycle towards a terminal rate of 4.50% by the second half of 2025.