Goldman Sachs expects the first interest rate hike from the ECB in July.

Goldman Sachs predicted that the European Central Bank (ECB) would raise interest rates by 25 basis points in July, followed by September and December. Goldman Sachs predicted that the ECB would increase interest rates four times in 2023 and raise the interest rate to 1.25%. Also, according to Goldman Sachs, in June, the ECB will decide to end its asset purchase program.

Pierre Wunsch, a Member of the ECB Governing Council, stated that as long as the eurozone economy does not face a harsh shock, they can pull the policy rate to the positive zone this year. Wunsch pointed out that a July rate hike is possible.

These explanations were also reflected in the pricing in the money markets. Markets expect a 75 basis point rate hike from the ECB for this year.