A more resilient economy and jobs market alongside hawkish central bank rhetoric was behind the forecast change, the note said. The ECB hike rates by 50 bps to 2.5% earlier this month. (Reporting by Dhara Ranasinghe; Editing by Amanda Cooper)
LONDON, Feb 22 (Reuters) - Deutsche Bank has lifted its
forecast for where the European Central Bank's key rate will
rise to in this tightening cycle to 3.75% from 3.25%, the German
bank said in a note on Wednesday.
Deutsche economists now expect the ECB to raise interest
rates by 50 basis points (bps) at its March and May meetings,
followed by a final hike of 25bp in June. They had previously
expected a 50 bps hike in March and a final 25 bps rise in May.
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