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Goldman Sachs sees ECB lowering rates by 25 bps in each meeting from April

Published 07/12/2023, 14:57
Updated 07/12/2023, 15:00
© Reuters. FILE PHOTO: A sign outside the European Central Bank building in Frankfurt, Germany October 27, 2022. REUTERS/Wolfgang Rattay/File Photo
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(Reuters) - The European Central Bank (ECB) will cut interest rates by 25 basis points (bps) in each meeting starting April next year, Goldman Sachs (NYSE:GS) wrote in a note on Thursday.

Economists at the brokerage forecast ECB's deposit rate reaching 2.25% by early 2025 from the current rate of 4%.

© Reuters. FILE PHOTO: A sign outside the European Central Bank building in Frankfurt, Germany October 27, 2022. REUTERS/Wolfgang Rattay/File Photo

"We view April as somewhat more likely given our expectation for firmer growth, the ongoing strength in wage growth and more data to confirm the slowdown in underlying inflation," the economists said.

They had earlier forecast the central bank would cut rate by 25 bps per quarter.

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