Goldman Sachs delays its forecast for the European Central Bank's interest rate hike

Golden Ten Data reported on April 16 that Goldman Sachs analysts Sven Jari Stehn and Alexandre Stott have reaffirmed their previous forecast that the European Central Bank will raise interest rates twice this year, but have adjusted their expectations regarding the timing of the hikes. They now anticipate that the European Central Bank will raise rates in June and September, rather than the previously expected April and June. They stated: “We expect energy prices to remain elevated this year, which will likely have a significant impact on inflation in the coming months, and the European Central Bank's overall guidance on the future path of interest rates remains relatively hawkish.” In addition, according to LSEG data, the money markets are also expecting the European Central Bank to raise interest rates twice this year, for a total increase of 50 basis points.