Deutsche Bank Raises ECB Terminal Rate Forecast to 2.75% Amid Energy Price Shocks

Deutsche Bank has upgraded its forecast for the European Central Bank's (ECB) terminal interest rate, predicting it will reach 2.75% by December due to persisting energy price shocks.

The bank had previously estimated a peak of 2.5%, but now expects another 25-basis-point rate hike in December following the September meeting.

This adjustment is driven by high energy prices, which have pushed eurozone inflation back above 3% and created uncertainty around economic growth.