Goldman Sachs expects ECB rate hikes in April and June as inflation concerns mount

Goldman Sachs expects the European Central Bank to deliver two 25 basis point hikes in April and June (total +50bps), joining J.P. Morgan and Barclays in a hawkish view. The banks cite elevated inflation risks tied to the Middle East war, implying upside pressure on rates, bond yields and EUR-sensitive assets if policymakers follow through.

Analysis

Goldman Sachs expects the European Central Bank to deliver two 25 basis point hikes in April and June (total +50bps), joining J.P. Morgan and Barclays in a hawkish view. The banks cite elevated inflation risks tied to the Middle East war, implying upside pressure on rates, bond yields and EUR-sensitive assets if policymakers follow through.