Institutional analysis: The ECB deposit rate may reach a peak of 3.50%

On February 8, Goldman Sachs Asset Management said in a report that it expects the ECB‘s deposit rate to peak at 3.50% this summer.

The current ECB deposit rate is 2.50%. However, the asset manager said it saw risks tilting towards an earlier pause in tightening.

The ECB is expected to raise rates by 50 basis points at its March meeting, in line with last week’s increase, but it said the ECB’s more balanced assessment of the inflation outlook made the policy outlook more uncertain from the second quarter onwards.