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Interest Rate Cuts Are On The Way

January 22, 2024

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.

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 13th 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 / [email protected]

Europe: Michael Lawrie at +44 (0) 161 359 4400 / [email protected]

Africa: Anthony McCardle at +27 21 300 2055 / [email protected] 

 

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 transactions 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 Privately Owned M&A Advisor in the World by PitchBook’s and LSEG's Global League Tables.

The content provided by Benchmark International, including articles, blog posts, videos, and other media, is for general informational purposes only and does not constitute legal, financial, investment, or business advice. While we strive for accuracy, the information may be based on third-party sources, market trends, and evolving industry data that are not independently verified or guaranteed to be current or complete. Any opinions expressed are those of the authors and do not necessarily reflect the views of Benchmark International. Market trends, forecasts, and forward-looking statements are inherently uncertain and subject to change. Nothing in our content should be relied upon as a substitute for personalized advice from qualified professionals. Benchmark International disclaims all liability for any loss or damage resulting from reliance on this content. Always consult with appropriate experts before making business decisions.

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