JP Morgan said on Friday it expected the European Central Bank to hike interest rates by another 25 basis points in September, taking its terminal rate forecast to 4% after the central bank maintained its hawkish stance and signalled more hikes to come.

The brokerage earlier expected the ECB’s terminal rate to peak at 3.75%.

JP Morgan hikes India’s FY24 GDP forecast to 5.5%

The European Central Bank raised euro zone borrowing costs to their highest level in 22 years on Thursday and said stubbornly high inflation all but guaranteed another move next month and likely beyond that too.