Goldman Sachs expects the Bank of England to hike by 50bp at its August meeting

<p>UK economists at Goldman Sachs are expecting the Bank of England Monetary Policy Committee to raise the Bank Rate by 50bp at the August meeting</p><p>Goldman Sachs forecast a Bank Rate peak of 6% in November this year. </p><p>GS cite in reasoning:</p><ul><li>firm wage pressures</li><li>firm inflationary pressures</li><li>With mostly fixed-rate mortgages in the UK, our Economists’ models
show that the stock of outstanding mortgages are responding more
slowly to policy rate changes.</li><li>
This delayed adjustment in output puts upward pressure to BoE’s
policy path.</li></ul><p>ps. Goldman Sachs on Japan – say if stocks drop on a Bank of Japan YCC 'tweak' would provide a buy opportunity. </p>

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