Newswire sources report Goldman Sachs is raising its terminal rate for the European Central Bank from 3.25% to 3.5%, up from its previously forecasted increase of 25 basis points in June.
Given the continued strength of labor markets worldwide and structural pressures on wages, analysts anticipate a higher terminal ECB deposit rate than our 3.25 baseline figure.
The European Central Bank will next convene on March 16. They then return for meetings on May 4th and June 15th.
Four days ago Lagarde declared
“Given the underlying inflation pressures, we anticipate raising interest rates by another 50 basis points at our next meeting in March,” Fitch Ratings announced last month.
Goldman is less pessimistic than the European Central Bank with their outlook, at least for now.
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