Interest rates will only fall to 3.75% next year, says Santander - days after Goldman Sachs' far spicier forecast

Interest rates will fall to 3.75 per cent by the end of next year, banking giant Santander has predicted, bucking a trend of bolder rate cut forecasts. Santander's forecast comes days after Goldman Sachs prediction that interest rates would fall to 2.75 per cent over the same period raised eyebrows. Santander forecasts base rate to fall to 3.75% by the end of next year - this is in contrast to Goldman Sachs, which is betting on rates falling to 2.75% over same period Graham Sellar, head of intermediary channels at Santander UK, said: 'While no-one has a crystal ball, as we edge towards the next MPC meeting and an expected 0.25 per cent cut to base, we can quietly assume that the ultra-low base rate of the last few years is now a thing of the past. Cuts incoming: Economists at Goldman Sachs are arguing that the Bank of England will cut interest rates to 2.75 per cent by the end of next year: Karpowicz told the news agency, Newspage: 'While their prediction of a 2.75 per cent base rate by next year is certainly eyebrow-raising, we must remember that economic forecasting is often as reliable as British weather.'