Advertisement
UK markets close in 1 hour 44 minutes
  • FTSE 100

    8,280.87
    -36.72 (-0.44%)
     
  • FTSE 250

    20,821.24
    +50.31 (+0.24%)
     
  • AIM

    810.78
    +0.76 (+0.09%)
     
  • GBP/EUR

    1.1765
    +0.0010 (+0.08%)
     
  • GBP/USD

    1.2791
    +0.0019 (+0.15%)
     
  • Bitcoin GBP

    53,091.09
    -742.12 (-1.38%)
     
  • CMC Crypto 200

    1,487.19
    -9.27 (-0.62%)
     
  • S&P 500

    5,303.58
    -1.14 (-0.02%)
     
  • DOW

    39,003.81
    -65.78 (-0.17%)
     
  • CRUDE OIL

    79.37
    +1.65 (+2.12%)
     
  • GOLD FUTURES

    2,361.60
    +27.10 (+1.16%)
     
  • NIKKEI 225

    38,855.37
    -44.65 (-0.11%)
     
  • HANG SENG

    18,821.16
    -6.19 (-0.03%)
     
  • DAX

    18,715.73
    -58.98 (-0.31%)
     
  • CAC 40

    8,072.20
    -60.29 (-0.74%)
     

Goldman Sachs cuts BoE terminal rate view to 5.5%

FILE PHOTO: Bank of England (BoE) building

(Reuters) - Goldman Sachs lowered its forecast for the Bank of England's (BoE) terminal rate by 25 basis points to 5.5%, after predicting that the central bank would hold interest rates steady at its November meeting against an earlier forecast of a hike.

The BoE raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25% in early August, its fourteenth back-to-back increase, and warned that borrowing costs were likely to stay elevated for some time.

Economists led by Sven Jari Stehn said in a note dated Friday that they still expect the BoE to hike rates by 25 bps at its September Monetary Policy Committee (MPC) meeting next week.

"Looking ahead to the November meeting, we see a greater chance that sequential wage and price pressures will have cooled sufficiently to allow the MPC to go on hold, given their preference for a flatter peak."

(Reporting by Aniruddha Ghosh in Bengaluru)