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

Published 31/07/2023, 12:41
© 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-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%

© 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

UBS 50 bps hike 25 bps hike - 5.75%

BofA 25 bps hike 25 bps hike - 5.50%

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