ECB to bring interest rates 'to a peak of 4% in September'

Despite that optimism, economists expect the first cut in interest rates to come only next April

European Central Bank president Christine Lagarde: Two more rate hikes likely, say economists.

The European Central Bank will hike borrowing costs to a peak of 4% in September, according to a survey of economists who are becoming more hawkish as inflation proves to be stubborn.

Such an outcome would mean two more quarter-point moves — starting with one on July 27, as the ECB has widely telegraphed. The analysts polled by Bloomberg had previously predicted the deposit rate would reach a maximum of 3.75%.