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:
- 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