Economic news

NatWest cuts forecast peak for BoE rates to 5.5% from 6%

2023.08.03 12:15


© Reuters. FILE PHOTO: Signage at a branch of NatWest Bank pictured in central London, May 21, 2008. REUTERS/Luke MacGregor/File Photo

LONDON (Reuters) – NatWest Markets cut its forecast for the peak in Bank of England interest rates to 5.5% after the BoE’s announcement of a latest rate hike and new guidance on Thursday, down from 6% it previously forecast.

“We are revising our Bank Rate forecast and now look for just one more 25bp hike to 5.5% in September,” NatWest Markets’ chief UK economist, Ross Walker, wrote in a note to clients.

“The apparent rowing-back in the MPC’s policy-tightening guidance leaves us comfortable maintaining our negative bias on sterling,” NatWest added.

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