The firm notes that:
"With the hawks continuing to hold the upper hand, we think the ECB will devlier a 75 bps increase at its meeting on 8 September. Although the growth outlook has further deteriorated, key Governing Council members have shown insensitivity to it. At the same time, there is greater focus on realised inflation data, which have continued to surprise to the upside."
Adding to that, they see rates peaking at 2% by the end of Q1 next year for the ECB.
