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BNP Paribas lowers its Bank of England terminal rate forecast
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(Reuters) – BNP Paribas on Friday lowered its Bank of England (BoE) terminal rate forecast to 5.50% from a prior estimate of 5.75%.
(Reuters) – BNP Paribas on Friday lowered its Bank of England (BoE) terminal rate forecast to 5.50% from a prior estimate of 5.75%.
The move comes after BoE raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25% on Thursday.
(Reporting by Subhadeep Chakravarty; Editing by Dhanya Ann Thoppil)
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
The terminal rate is the final interest rate that a central bank aims to achieve after a series of adjustments, reflecting its long-term monetary policy stance.
An interest rate is the amount charged by lenders to borrowers for the use of money, typically expressed as a percentage of the principal.
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives like controlling inflation and stabilizing currency.
A key interest rate is the primary rate set by a central bank that influences borrowing costs and economic activity, often used as a tool for monetary policy.
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