Goldman Sachs lowered its estimate for an interest rate hike by the European Central Bank (ECB) in May to 25 basis points after the central bank raised rates to fight inflation amid calls to rein in policy tightening.
The investment bank reduced its estimate from the earlier forecast of 50 bps, pushing its ECB terminal rate forecast to 3.5% from 3.75% previously."We believe that further rate hikes are likely despite the financial market volatility because the risk of severe banking sector contagion still looks limited and core inflation is likely to remain strong in coming months," Goldman Sachs economists, led by Sven Jari Stehn, said in a note dated March 16.
The investment bank anticipates the ECB will continue to be in tightening mode despite volatility in financial markets and expects Europe's core inflation to remain firm in coming months.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Goldman Sachs May Be Getting a $100 Million Payout Over the Silicon Valley Bank CollapseThe financial fallout from Silicon Valley Bank's failure continues, and Goldman Sachs might be along for the ride.
Baca lebih lajut »
Goldman Sachs bought SVB bonds whose $1.8B loss set off its collapseGoldman Sachs bought the SVB bonds whose $1.8 billion loss set off the startup lender's meltdown
Baca lebih lajut »
Goldman Sachs cuts U.S. GDP forecast after banking crisisGoldman Sachs on Wednesday lowered its forecast for fourth-quarter U.S. gross domestic product (GDP) growth, citing risks to the lending environment as smaller banks pull back on loans to preserve liquidity in the face of a banking crisis.
Baca lebih lajut »
Analysis: For Goldman Sachs, SVB's botched stock sale had a silver liningAs SVB Financial Group wrestled with a capital shortfall and the prospect of a downgrade to its credit rating last week, it went to Goldman Sachs Group Inc and worked out an unusual two-part plan, according to people familiar with the discussions.
Baca lebih lajut »
SVB collapse: Goldman Sachs raises US recession odds following dip in bank stocksGoldman Sachs raised the chances of a recession in the United States to 35%, up 10 percentage points from its previous prediction, in the aftermath of Silicon Valley Bank's collapse and a dip in stock futures for large U.S. banks.
Baca lebih lajut »