Goldman Sachs raises ECB terminal rate forecast to 3.75%

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 cooling inflation 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 25bps and 50bps 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

Reuters

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Goldman Sachs raises ECB terminal rate forecast to 3.75%

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