Goldman Sachs expects two ECB rate hikes by Reuters

© Reuters. FILE PHOTO: Goldman Sachs company logo is on the floor of the New York Stock Exchange (NYSE) in New York City, USA, July 13, 2021. REUTERS / Brendan McDermid / File Photo

LONDON (Reuters) – Goldman Sachs (NYSE 🙂 expects the European Central Bank to raise interest rates by 25 bps each in September and December, after politicians finally acknowledged rising inflation risks in a policy review on Thursday.

In a report released Friday, Goldman Sachs strategists expect politicians in March to decide to end their asset buyback program by June and raise their deposit rates by 25 bps each in September and December.

“After major upward inflation surprises and yesterday’s high-policy turning point, we are now looking for a significant earlier exit from the ECB,” said strategists at the US Investment Bank in a note, revising its inflation forecasts higher.

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