Central Banks

ECB to Bring Rates to 4% Peak in September, Economists Say

  • Analysts see hikes of 25 basis points at next two meetings
  • Inflation to worsen, but economy seen exiting recession
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The European Central Bank will boost borrowing costs to a peak of 4% in September, according to a survey of economists who’re becoming more hawkish as inflation proves to be stubborn.

Such an outcome would mean two more quarter-point moves — starting with one on July 27, as the ECB has widely telegraphed. The analysts polled by Bloomberg had previously predicted that the deposit rate would reach a maximum of 3.75%.