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