Rabobank maintains its forecast for a 25bps ECB rate hike next week; expects the ECB to raise rates by another 25bps, likely in September

Expects the ECB will materially raise its inflation projections while growth may be weaker than in the central bank's March forecasts. "The conflict in the Middle East is still ongoing, and risks of inaction are now greater than the risks of potentially hiking in error." "Our own inflation forecasts suggest that the ECB will revise its own inflation projections up significantly, while the growth may be weaker than ECB staff projected in March." "We therefore expect that the ECB will opt for a couple of risk-management hikes, but we do not expect a full-blown hiking cycle."