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

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Earlier posts on Bank of England responses:

• JP Morgan are forecasting another 75bp of Bank of England rate hikes
• Goldman Sachs now sees 50 bps Bank of England hike in August

This article was written by Eamonn Sheridan at www.forexlive.com. Source