Goldman Sachs and other banks expect smaller hike from ECB in May

Goldman Sachs expects the European Central Bank to deliver a smaller quarter-point hike in May as it grapples with stress in the banking sector and high core inflation. The ECB’s decision to press ahead with a 50 bps hike has caused Goldman Sachs to revise its terminal rate forecast downward to 3.5%. Meanwhile, J.P.Morgan, Deutsche Bank and Swedish Bank SEB expect the ECB to deliver a 50 bps hike in May but warned of downside risks to their forecasts given current