Nomura: The European Central Bank will raise interest rates three more times this cycle, supporting the euro.

Nomura economists say the European Central Bank will raise interest rates three more times in this cycle. They believe the ECB's hawkish stance will boost the euro against the pound in the coming months. Nomura's Andrzej Szczepaniak, George Buckley, Josie Anderson, and David Seif wrote after the ECB raised rates by 25 basis points on Thursday as scheduled: "The new baseline forecasts released by ECB officials led by President Lagarde are more hawkish than we expected." "We believe the ECB's hawkish forecasts are reasonable and will result in monetary policy being tighter than we previously expected." Nomura economists now expect the ECB to raise rates again in September, December, and March next year, bringing the deposit rate to 3%.