MILAN, Aug 31 Reuters Goldman Sachs expects the European Central Bank to raise interest rates by 75 basis points at its policy meeting next week after data on Wednesday showed euro zone inflation hitting a new record high.

Given today39;s strongerthanexpected inflation data together with hawkish commentary and upside risks to nearterm growth we now expect the Governing Council to hike by 75bp at the September meeting, the U.S. bank said in a note on Wednesday.

The bank39;s economists also raised where they expect rates to peak, to 1.75 in February 2023, from 1.50 previously.

Markets have ramped up bets on such a move since last Friday, when some sources told Reuters policymakers could discuss a 75 basispoint move, and hawkish policymaker commentary at the Jackson Hole symposium. 

Other banks including Nordea and Danske Bank have also said they expect a 75 basispoint hike.

Reporting by Danilo Masoni; editing by Yoruk Bahceli

Source Reuters