Economists at Goldman Sachs raised their forecasts for peak interest rates of the European Central Bank, reflecting easing tensions in financial markets and concerns over underlying inflation.
Analysts including Jari Stehn said in a note to clients on Tuesday that the ECB's Governing Council will raise interest rates by 25 basis points in May, June and July.
“A 50 basis-point hike is very likely on the back of stronger data, including easing signs of further deterioration in bank lending conditions, and firmer inflation data in April,” they said.
"We expect core inflation to cool somewhat in the coming months and uncertainty about the global outlook has increased," the report said.”
