Goldman Sachs: ECB to Hike Rates Twice in April-June, Impacting Global Markets

• Goldman Sachs revised its forecast, now expecting the European Central Bank (ECB) to raise interest rates by 25-25 basis points in April and June 2026.
• This change reflects new concerns over persistent inflation and economic pressures in the Eurozone, indicating inflation is not fully under control.
• Higher interest rates could strengthen the Euro, put pressure on equity markets, and impact global investment flows, potentially affecting emerging markets like India.
• For the common person, rising interest rates mean higher EMIs on loans, increased returns on savings (though limited by inflation), and potential impacts on jobs and income.
• Companies face higher borrowing costs, potentially slowing new projects and recruitment, while stock and real estate markets may experience increased volatility.