Big ECB interest rate hike is now forecast by Deutsche Bank

The prediction from Deutsche Bank follows another record inflation reading and an intensifying public debate on how to conduct monetary policy. Picture: AP Photo/Michael Probst

Deutsche Bank broke with consensus to predict the European Central Bank will raise its interest rate by half a point, judging that hawkish officials will sway colleagues on the need for aggressive action against inflation.

The shift in view by forecasters at a major European bank shows how momentum for greater urgency, evidenced by another call for a big hike from the Austrian central bank chief, has begun to persuade observers that such a push could yet prevail.