(Reuters) – UBS economists said the European Central Bank (ECB) was likely to hike interest rate by another 25 basis points (bps) in July, lifting the benchmark for borrowing costs to 3.75%, before taking a pause for this rate increase cycle.
The brokerage said in a note on Thursday that inflation will likely slowly improve over the summer.
The ECB on Thursday raised its benchmark rates by 25 bps – the smallest increase in its rate-hike cycle that started last summer — to 3.25%.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Rashmi Aich)
