BoE forecasted to carry out first rate hike in Q1 2015 - Goldman Sachs

FXStreet (Łódź) - The Goldman Sachs Economics research team suggest that the BoE could hike interest rates earlier than expected, already in the first quarter of next year.

Key quotes

"Reflecting the upward revisions to our growth forecasts and the recent ‘hawkish’ shift in the communication of a number of MPC members, we are bringing forward our forecast for the first rise in Bank Rate from 2015Q3 to 2015Q1."

"Thereafter, we expect the pace of tightening to be slow and gradual, with Bank Rate reaching 1.0% by end-2015, 1.75% by end-2016 and 2.5% by end-2017."