Deutsche Bank Sees ECB Interest Rates Peaking at 2.75% in December

Deutsche Bank's research arm has updated its forecast for European Central Bank interest rates, now expecting them to peak at 2.75% due to persistent energy risks and inflation pressures.

The bank had previously predicted a terminal rate of 2.5%, but this new estimate suggests that the ECB may need to tighten monetary policy further in December, following a hike expected in September.

While some brokerages expect faster geopolitical easing or weaker growth to cap rates at 2.5%, Deutsche Bank believes that a move above 3% would require broader inflation pressures.

The revised forecast aligns with growing expectations among brokerages for further ECB tightening this year, as the euro zone's economic growth holds up and energy risks linger.