Goldman Sachs expects ECB to raise rates thrice this year

Reuters Images/Brendan McDermid

The brokerage said in addition to an increase of 50 basis points in March and 25 basis points in May, it was estimating a 25 basis-point hike in June

Reshma Rockie, Reuters News

February 21, 2023

PHOTO

Goldman Sachs said it was expecting the European Central Bank to raise interest rates thrice this year, taking the terminal rate to 3.5% from 3.25% estimated earlier.

In a note dated late Monday, the brokerage said in addition to an increase of 50 basis points in March and 25 basis points in May, it was estimating a 25 basis-point hike in June.

Goldman's change in expectations comes after hawkish commentary from ECB board member Isabel Schnabel and French central bank chief Francois Villeroy de Galhau, two influential policymakers from the 26-member Governing Council on Friday.

Markets currently see ECB rates peaking at around 3.7% by the end of summer.

(Reporting by Reshma Rockie George; Editing by Anil D'Silva)

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.