Economy

European interest rates expected to be hiked four more times

Officials have said that higher rates, which have significantly raised borrowing costs, will stay for the rest of the year

Philip Lane, the ECB chief economist, has said borrowing costs could stay at their peak for “a fair number of quarters”. Picture: Rollingnews.ie

The European Central Bank will step up its fight against stubborn inflation by raising interest rates four more times and unwinding its €5 trillion bond portfolio at a quicker pace, according to a Bloomberg survey of economists.

Three hikes of 25 basis points each will follow next week’s all-but-certain half-point move — bringing the deposit rate to 3.75 per cent in July, respondents said.

Goldman Sachs and Deutsche Bank both predict that level, though they ...