Deutsche Bank now expects the European Central Bank to raise interest rates by another 25 basis points in December, in addition to an anticipated hike in September, as persistent energy-related risks keep pressure on the euro zone's inflation outlook, Reuters reported.
The bank's research arm had previously forecast the ECB's deposit facility rate would peak at 2.5%, only modestly above its current level of 2.25%. That outlook was based on expectations that the energy price shock would prove temporary and that economic growth would weaken, Reuters reported.
