Interest Rate Cuts Are On The Way

Now that 2024 is underway and the economy is healthy, we can also look forward to some good news for the markets. Top banks and economists are forecasting that interest rates will be cut starting in late Q1 into Q2.

There is still some variation in just how much the top strategists are forecasting interest rates to be cut, and when. Of sixteen top financial institutions, the majority of them are forecasting rate cuts to begin in March or June. Some are even predicting that rates will be cut as many as 5 times in 2024.

Here is what the top strategists across the street think:

Goldman Sachs: First Rate Cut = March, Cuts in 2024 = 75 BPS (base points)
J.P. Morgan: June, 125 BPS
Morgan Stanley: June, 100 BPS
Bank of America: June, 100 BPS
UBS: May, 75 BPS
Barclays: June, 75 BPS
Citi: July, 100 BPS
Deutsche Bank: June, 175 BPS
HSBC: June, 75 BPS
Wells Fargo: June, 225 BPS

With regard to how many base points (BPS) rates will be cut, the forecasts range from as low as 50 BPS to as high as 275 BPS, with the average consensus being around 140 BPS. One basis point equals 1/100th of 1%, or 0.01%.

The good news regarding falling rates is supported by the economic optimism revealed by the 13^th annual survey conducted by Citizens Bank regarding the M&A outlook for 2024. We are now seeing the highest levels of optimism in several years for deal-making activity, with solid expectations for the U.S. economy, along with rising enthusiasm among buyers.

This is great news if you are looking to sell your company, making this a better time than ever. Keep in mind that it can take several months to years to complete the sale of a company, so the sooner you get the process started, the better prepared you will be to capitalize on the best timing to go to market and get the best deal you can get.

Ready to Sell?

If you are considering selling your company, now is the time to act. Please reach out to our M&A experts at Benchmark International to discuss how we can help you achieve the best deal possible.

Americas: Sam Smoot at +1 (813) 898 2350 / Smoot@BenchmarkIntl.com

Europe: Michael Lawrie at +44 (0) 161 359 4400 / Lawrie@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com

ABOUT BENCHMARK INTERNATIONAL:

Benchmark International is a global M&A firm that provides business owners with creative, value-maximizing solutions for growing and exiting their businesses. Benchmark International has handled over $11 billion in transaction value across various industries from offices across the world. With decades of M&A experience, Benchmark International’s transaction teams have assisted business owners with achieving their objectives and ensuring the continued growth of their businesses. The firm has also been named the Investment Banking Firm of the Year by The M&A Advisor and the Global M&A Network as well as the #1 Sell-side Exclusive M&A Advisor in the World by Pitchbook’s Global League Tables.

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