Published by Global Banking & Finance Review®
Posted on March 23, 2026
1 min readLast updated: March 23, 2026
Add as preferred source on GoogleGoldman Sachs now anticipates two 25 basis‑point ECB rate hikes in April and June amid mounting inflation risks tied to Middle East energy shocks, reversing its earlier expectation of steady rates.
March 23 (Reuters) - Goldman Sachs said on Monday it expects the European Central Bank to deliver two 25 basis point interest rate hikes in April and June, joining peers J.P.Morgan and Barclays as policymakers signal inflation risks driven by the Middle East war.
The brokerage previously expected the central bank to maintain rates steady throughout this year.
At its March policy meeting, the ECB left interest rates unchanged but indicated that it was closely watching growth and inflation risks posed by surging oil prices and was ready to act if necessary.
(Reporting by Kanchana Chakravarty in Bengaluru; Editing by Rashmi Aich)
Goldman Sachs expects ECB rate hikes due to persistent inflation risks, especially from rising oil prices and the ongoing Middle East conflict.
Goldman Sachs predicts the ECB will raise interest rates by 25 basis points in both April and June.
At its March meeting, the ECB kept interest rates unchanged but signaled readiness to act if inflation pressures intensify.
Key factors include inflation risks driven by surging oil prices and geopolitical tensions in the Middle East.
Explore more articles in the Finance category
