Sweden’s SEB: lowered peak ECB interest rate forecast to 3.75%

On March 24, Jussi Hiljanen, chief strategist of US dollar and euro interest rates at SEAS Bank in Sweden, said that he lowered his previous forecast for the peak of the European Central Bank‘s deposit rate by 25 basis points, and it is expected to reach 3.75%. “Our base case is that banking turmoil can be contained and that the ECB will raise rates further,” he said in a note.

However, due to tightening credit conditions, deposit rates are expected to peak at 3.75% in early summer, 25 basis points lower than our previous forecast. “