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[1/2]The Bank of England is seen in London March 19, 2008. REUTERS/Luke MacGregor (BRITAIN)/File Photo
Aug 4 (Reuters) – Barclays and UBS joined BNP Paribas in lowering their Bank of England (BoE) terminal rate forecast, now expecting the central bank’s main rate to peak at 5.50% following another quarter-point hike in September.
The banks had earlier forecast a peak of 5.75% as they expected a bigger 50 basis points hike in Thursday’s meeting. BoE raised its key interest rate to a 15-year high of 5.25%, warning that borrowing costs were likely to stay high for some time.
That prompted UBS to push its BoE rate cut prediction to May 2024 from February 2024.
Top Wall Street banks such as J.P.Morgan, Goldman Sachs, Citigroup, as well as Germany’s Deutsche Bank still see the BoE extending its tightening cycle to November for a peak rate of 5.75%.
Reporting by Subhadeep Chakravarty; Editing by Dhanya Ann Thoppil and Nivedita Bhattacharjee
Our Standards: The Thomson Reuters Trust Principles.
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