The tone from the Bank of England was less-hawkish today and that’s led NatWest to cuts its terminal peak rate forecast to 5.50% from 6.00%.
Market pricing puts the terminal rate at 5.70% next March. For the upcoming meeting on Sept 21, the market is at a 61% chance of a 25 bps hike with the remainder on ‘no change’.
This article was written by Adam Button at www.forexlive.com. Source