(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-point (bps) hike to 5% in the June meeting.
Goldman over the weekend cut its terminal rate forecast to 5.75% form 6%, on slowing UK labour demand and cooling core inflation, while Deutsche Bank (ETR:DBKGn) went back to expecting three more quarter-point hikes, from an earlier forecast of 50 bps raise on Thursday and one more in September.
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 25 bps hike 25 bps hike 25 bps hike 5.75%
Sachs
Citigroup (NYSE:C) 25 bps hike 25 bps hike 25 bps hike 5.75%
Deutsche 25 bps hike 25 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 hike 25 bps hike - 5.75%
Barclays (LON:BARC) 50 bps hike 25 bps hike - 5.75%
UBS 50 bps hike 25 bps hike - 5.75%
BofA 25 bps hike 25 bps hike - 5.50%