Most Banks See More ECB Rate Hikes With Potentially Higher Peak

Most economists predict the European Central Bank will act more aggressively to tackle inflation that remains five times its target, with the peak for interest rates now likely to be higher.

Banks including Goldman Sachs, Morgan Stanley and ING see policymakers delivering half-point hikes at the first two meetings of 2023. After President Christine Lagarde’s hawkish rhetoric, officials may signal a so-called terminal rate of high as 4%, according to TS Lombard.