Citigroup: ECB will raise interest rates by 0.75% in next two ‎meetings

Citigroup revealed its expectations that the European Central ‎Bank will raise interest rates by 75 basis points in the next two ‎meetings this month and in October.‎

The group warned that uncertainty prevails in interest trends ‎after 2022, amid the possibility of a future macroeconomic ‎slowdown.‎

According to Al-Arabiya, it should be noted that in recent days, ‎an increasing number of policy makers called for a raise of ‎more than half a point in the September 8 meeting, knowing ‎that the deposit interest currently stands at 0%.‎

Goldman Sachs had expected a few days ago that the European ‎Central Bank would raise interest rates by 75 basis points at its ‎meeting next week, after inflation in the euro area hit a new ‎record high, at 9.1% in August on an annual basis.‎

The inflation reading came in higher than analysts’ ‎expectations at 9%, up from 8.9% in July.‎

Goldman Sachs experts also raised the peak they expect ‎European interest rates to reach by February 2023 to 1.75%, ‎instead of 1.5% in their previous estimates.‎

It is noteworthy that the European Central raised interest rates ‎by 50 basis points last July, at a time when speculation revolves ‎around the possibility of raising them by 75 basis points at its ‎next meeting in September, at a time when analysts expect ‎inflation rates to reach 10% this year. ‎