LONDON (Reuters) – Deutsche Bank (ETR:DBKGn) says it now expects the European Central Bank to deliver two hefty 50 basis point rate hikes this year after kicking of a tightening cycle with a quarter point move in July.
The ECB ended a long-running stimulus scheme on Thursday and said it would deliver next month its first interest rate hike since 2011, followed by a potentially larger move in September.
In a note published late Thursday, after the ECB meeting, Deutsche Bank said that it had changed its rate hike forecasts.
“Our new ECB hiking baseline is +25bp in July, +50bp in September, +50bp in October and +25bp in December,” the note said.
“The deposit rate will be 1% by year-end, lifting it to the lower end of the range for estimates for the nominal neutral rate.”
Source:reuters