ECB seen raising rates by 25 bps in May – Goldman Sachs

Dhwani Mehta FXStreet

Economists at Goldman Sachs said in a note on Friday that they now expect the European Central Bank (ECB) to raise interest rates by 25 basis points (bps) in May vs. the prior estimate of 50 bps, pushing the terminal rate to 3.50% from 3.75%.

Additional quotes

“Believe the ECB remains in tightening mode despite financial market volatility.”

“We expect Europe's core inflation to remain firm in the coming months, moving up further to 5.8% YoY in March.”

EUR/USD refreshes day high above 1.0640 as hawkish Fed bets diminish, USD corrects further

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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