Three European banks lowers BoE peak rate forecast
Reuters
Published Aug 04, 2023 06:56
Updated Aug 04, 2023 10:00
(Reuters) -Barclays and UBS joined BNP Paribas (EPA:BNPP) 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 (NYSE:GS), Citigroup (NYSE:C), as well as Germany's Deutsche Bank (ETR:DBKGn) still see the BoE extending its tightening cycle to November for a peak rate of 5.75%.
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Written By: Reuters
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