Natwest terminal rate forecasts: Federal Reserve 5% (by mid-2023) & ECB 2.25% (by Q1-2023)

Snippet via analysts at Natwest, thier overarching view is for major DM economies to enter into recession this year.

US CPI forecast down to 3.2% in 2023

  • Eurozone inflation at 2.6% this year
  • UK inflation at 4.3%

Fed Funds rate terminal at 5% by the middle of this year

  • European Central Bank rates to 2.25% this quarter and then to persist there
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