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Goldman Sachs on Wednesday raised its forecast for the Bank of England's terminal rate to 5.25% in September, largely in line with other Wall Street banks, as recent economic data showed stubbornly high inflation.
The bank had earlier forecast BoE's main interest rate to peak at 5% in August.
Data released earlier this month showed inflation fell less than expected in April.
"While the BoE has been reluctant to hike further, we believe that persistent inflationary pressures will push the MPC towards more tightening," said Goldman Sachs analysts led by Sven Jari Stehn. (Reporting by Priyadarshini Basu; Editing by Savio D'Souza)