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

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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