MILAN (Reuters). Deutsche Bank (ETR:), Economists increased their expectations regarding European Central Bank policy tightening. Now they expect one of the interest rate rises in the 3rd quarter to be a 50-basis point increase, more likely in September then July.

“A 50bp hike is not inconsistent with the reaction function presented in President Lagarde’s policy normalisation blog… We believe the ECB is continuing to underestimate inflation and we expect support for a 50bp hike will increase as the summer progresses,” they wrote in a note late on Tuesday.

Deutsche Bank previously predicted that there would be back-toback 25 basis point hikes starting July.