Goldman Sachs economists now expect the European Central Bank to raise interest rates by 25 basis points in July, and forecast two more increases by the end of the year, in September and December.
According to Bloomberg, in a report by Goldman published today, economist Sven Yarri Sten predicts that the ECB will increase its key interest rate four more times in 2023 to finally raise it to 1.25%.
“Given the continuing cost pressures and the limited evidence of a continuing impact on demand, recent ECB comments have highlighted growing concerns,” Stan said in the report.
Goldman Sachs also says it expects the ECB to decide in June to end its Asset Purchase Program by the end of the second quarter.
“While a sharper slowdown in growth or new state pressures could lead to a slower policy normalization, some clearer indications of side effects may require faster adjustment,” Stan said.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
