Deutsche Bank forecast Bank of England peak rate at 5.75% – more ‘forceful’ hikes on table

Deutsche Bank’s forecast for the Bank of England peak rate is now at 5.75%:

  • projecting three quarter point hikes in August, September, and November as likely
  • DB are not looking for another +50 as they expect downside risks to services inflation in the next data point
  • DB does warn though that risks to their 5.75% terminal rate call are tilted to the upside,
  • saying that inflation and wages may take longer to cool down
  • a peak terminal rate of near 6% no longer looks unattainable

Earlier posts on Bank of England responses:

This article was written by Eamonn Sheridan at Source