VILNIUSPRAGUE, Feb 3 Reuters The European Central Bank is likely to raise interest rates again in May after an already signalled hike in March, two policymakers said on Friday, with one arguing that the peak or terminal rate is at least starting to appear on the horizon.

The ECB raised rates by a half a percentage point to 2.5 on Thursday and promised a similar move in March but kept its options open about subsequent steps, raising doubts among investors about its resolve to keep raising rates to tame inflation.

But Slovakia39;s Peter Kazimir and Lithuania39;s Gediminas Šimkus said that March would not be the end of policy tightening because inflation was still far too high, even if there had been an improvement recently.

The March increase will not be the last, Kazimir said in a statement. We will decide how many more will be needed later.

Simkus said the May increase could be either 25 or 50 basis points but a step up to 75 bps was unlikely.

They were confirming what sources had told Reuters after the meeting on Thursday.

While neither would specify where rate hikes could end, Simkus said the ECB could be approaching a peak.

I see positive trends for inflation, Simkus said. I think that we are already moving towards that terminal rate.

Indeed, analysts polled by the ECB expect the euro zone central bank to eventually conquer inflation but not for another two years.

Markets currently price the terminal rate at 3.35, suggesting that some investors see just a…