The Strategist

Deutsche Bank raises ECB peak rate forecast

02/23/2023 - 06:11

Deutsche Bank announced that it increased its forecast for the ECB's peak rate during the present cycle of monetary tightening from 3.25% to 3.75%.

According to economists, the central bank will increase the interest rate by 50 basis points at its meetings in March and May, with a final raise of 25 basis points in June.

Prior to this, additional 50 basis points were expected in March, and final 25 basis points – in May.

The stronger resilience of the economy and labor market, as well as signals from the central bank of a leaning toward tight policy, were the reasons behind the rise in the forecast, according to Deutsche.