Goldman Sachs: ECB to hike rates by 25bps in May - Breaking The News

Goldman Sachs: ECB to hike rates by 25bps in May

17 March

1 min read

EPA-EFE/ANDRE PAIN

Goldman Sachs Group Inc. predicted on Friday that the European Central Bank (ECB) will raise interest rates by 25 basis points in May, compared to the previously forecast 50 basis points. The bank said the terminal rate is now expected to be at 3.50%, down from its previous expectations of 3.75%.

However, Goldman Sachs said the ECB will remain "in tightening mode" in spite of the recent volatility in financial markets, in contrast with their assessment that the United States Federal Reserve will not raise rates in March. "We expect Europe's core inflation to remain firm in the coming months, moving up further to 5.8% year-on-year in March," the bank added.

inflation interest rate ecb goldman sachs

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