Citi: ECB to raise rates in July and September

Citibank said on Tuesday that it forecasts the European Central Bank will hike rates by 25 basis points in July and then by another 25 basis points in September.

The multinational investment bank added that the relatively quick return to zero or slightly above zero is expected to be accepted by the European Central Bank decision-makers.

Recently, several ECB officials hinted the bank is likely to raise rates in the third quarter of the year with ECB Governing Council Member Olli Rehn noting he is in favor of a July rate hike.