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Goldman Sachs expects ECB rate hikes in April and June as inflation concerns mount

BY Reuters | ECONOMIC | 03/23/26 03:12 AM EDT

March 23 (Reuters) - Goldman Sachs (GS) said on Monday it expects the European Central Bank to deliver two 25 basis point interest rate hikes in April and June, joining peers J.P.Morgan and Barclays as policymakers signal inflation risks driven by the Middle East war.

The brokerage previously expected the central bank to maintain rates steady throughout this year.

At its March policy meeting, the ECB left interest rates unchanged but indicated that it was closely watching growth and inflation risks posed by surging oil prices and was ready to act if necessary.

(Reporting by Kanchana Chakravarty in Bengaluru; Editing by Rashmi Aich)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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