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Factbox-Brokerages price in higher peak after BoE's June rate hike

Published 12/07/2023, 07:51
Updated 12/07/2023, 07:57
© Reuters. FILE PHOTO: A television news crew works outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File Photo
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(Reuters) - Several major global banks raised their terminal rate forecasts for the Bank of England's (BoE) key interest rate after the central bank surprised with a larger-than-expected 50 basis points (bps) hike to 5% in the June meeting.

Deutsche Bank (ETR:DBKGn) on Tuesday raised its forecast for the August meeting to a 50 bps hike amid wage pressure concerns but removed its forecast for a rate increase in November. It had earlier forecast a 25 bps raise each in August, September and November meetings.

Following are forecasts from some global banks:

Brokerage August September November Terminal

Name Expectation Expectation Expectation rate

J.P.Morgan 25 bps hike 25 bps hike 25 bps hike 5.75%

Morgan 25 bps hike 25 bps hike - 5.50%

Stanley

Goldman 50 bps hike 25 bps hike 25 bps hike 6%

Sachs

Citigroup (NYSE:C) 25 bps hike 25 bps hike 25 bps hike 5.75%

Deutsche 50 bps hike 25 bps hike - 5.75%

Bank

HSBC (LON:HSBA) 25 bps hike 25 bps hike - 5.50%

BNP Paribas (EPA:BNPP) 50 bps bike 25 bps hike - 5.75%

© Reuters. FILE PHOTO: A television news crew works outside the Bank of England in the City of London financial district in London, Britain May 11, 2023. REUTERS/Henry Nicholls/File Photo

Barclays (LON:BARC) 50 bps hike 25 bps hike - 5.75%

UBS 50 bps bike 25 bps hike - 5.75%

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