Goldman Sachs raise its estimate for ECB interest rate hikes for the 2nd time in 2 weeks

Goldman Sachs had expected the European Central Bank to raise its rate by 25 bp in May, but has revised this to +50bp in a research note.

• now forecast peak by the European Central Bank to 3.75% by June (was at 3.5%)

GS citing

• higher than expected Spanish and French inflation numbers
• remarks from ECB chief economist Lane this week to the effect that rates will be held higher for longer

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European Central Bank policy meetings ahead: