LONDON (Reuters) - Goldman Sachs (NYSE:GS) said on Thursday it was raising its forecast for the peak of interest rates set by the Bank of England to 5%, citing stronger-than-expected activity in Britain's economy.
The BoE's Bank Rate stands at 4.25% and investors in interest rate futures are putting a roughly 90% chance on an increase to 4.5% on May 11 after the BoE's next scheduled meeting, and a 60% probability of it hitting 5% by September.