Goldman Sachs sees 75 bps ECB rate hike in September
2022.08.31 16:37
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FILE PHOTO: The Goldman Sachs company logo is on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 13, 2021. REUTERS/Brendan McDermid
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MILAN (Reuters) – Goldman Sachs (NYSE:GS) expects the European Central Bank to raise interest rates by 75 basis points at its policy meeting next week after data on Wednesday showed euro zone inflation hitting a new record high.
“Given today’s stronger-than-expected inflation data -together with hawkish commentary and upside risks to near-term growth – we now expect the Governing Council to hike by 75bp at the September meeting,” the U.S. bank said in a note on Wednesday.
The bank’s economists also raised where they expect rates to peak, to 1.75% in February 2023, from 1.50% previously.
Markets have ramped up bets on such a move since last Friday, when some sources told Reuters policymakers could discuss a 75 basis-point move, and hawkish policymaker commentary at the Jackson Hole symposium.
Other banks including Nordea and Danske Bank have also said they expect a 75 basis-point hike.
