Further rate hikes from the European Central Bank are expected following strong economic data releases in recent days.
Financial markets on Wednesday were suggesting interest rates are anticipated to rise from the current overnight deposit rate rate of 2.5% to the ECB's record high of 3.75% in the third quarter of this year and remain there until the end of the year.
This is based on rate swaps data, which point to the market's expectation of the likeliest path for the cost of borrowing over coming months.
The ECB raised its deposit rate from 2% earlier this month, following three hikes last year from -0.5% in June to 1.50% in November. The marginal lending rate was also hiked to 3.25% this month, from 2.75% in December and 0.25% last June.
ECB interest rates were last higher in the run-up to the global financial crisis and before that the highest deposit rate was 3.75% in 2001, following monetary union and the launch of the euro at the start of 1999.
Swap markets data from Bloomberg has climbed over the past month, from an implied peak of 3.25% at the start of January.
Improving macroeconomic data from the bloc included wages growth close to 5% and this week's preliminary purchasing managers' index numbers, which indicated business activity is healthier than expected.