(In April 18 story, corrects first paragraph to say 'signs of
underlying inflation remaining strong', not 'signs of cooling
inflation')
April 18 (Reuters) - Goldman Sachs on Tuesday raised its
terminal rate forecast for the European Central Bank (ECB) to
3.75% from 3.5%, citing easing worries about the banking system,
signs of underlying inflation remaining strong and generally
hawkish commentary from policymakers.
Goldman economists expect the ECB to raise rates by 25 basis
points (bps) in May, June and July, but said the choice between
a 25 bps and a 50 bps increase in May will be a close call due
to lower banking risks, growth resilience and strength in
underlying inflation.
(Reporting by Subhadeep Chakravarty in Bengaluru)
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