- ECB may need to increase borrowing costs by more than 100 basis points before it hits the terminal rate.
- Holzmann expects peak rate to be above 4%.
- More rate hikes are expected due to stubborn inflation.
- Fresh ECB forecasts show inflation slowing more than previously thought this year.
- Other hawkish policymakers restate the case for lifting rates further.
ECB’s Holzmann Expects Deposit Rate to Peak Above 4%
ECB Governing Council member Robert Holzmann expects deposit rate to peak above 4%, with more rate hikes due to stubborn inflation. Fresh ECB forecasts show inflation slowing more than previously thought this year.