Expectations of officials of the European Central Bank and investment banks indicate that European interest rates will witness further increases in the coming months in order to control inflation in the euro area.
Goldman Sachs expects the European Central Bank to raise interest rates 3 times this year.
The US investment bank said in a research note that it expects to raise interest rates in the euro zone to 3.5 percent, compared to a previous estimate of 3.25 percent.
Goldman Sachs sees the possibility of an ECB rate hike of 50 basis points in March, 25 basis points in May and an additional 25 points in June.
And she was European Central Bank President Christine Lagarde also said that the bank plans to raise interest rates by an additional 50 basis points next month, in order to bring inflation back to its target level of 2 percent.
“What happens after the March meeting will depend on the economic data,” Lagarde added, in prepared remarks on the bank’s website.
The European Central Bank raised interest rates by 50 basis points in early February, at its first meeting this year, after raising them by 250 basis points last year, the fastest rate of rate increases ever, in order to curb inflation, which rose to its highest level in nearly 40 years. Background of rising energy prices and the Russian-Ukrainian crisis.
In statements last month, Christine Lagarde said that the European Central Bank will continue to raise interest rates, at a steady pace, until they reach the appropriate level to control inflation, and reduce it to the target level of 2 percent.
