The looming gas crisis in the eurozone, along with renewed political problems in Italy, will push the bloc into a moderate recession by early next year and limit interest rate hikes by the European Central Bank, JPMorgan warned.

The bank's economists lowered their economic forecasts, predicting that eurozone GDP growth will slow to 0.5 percent this quarter and then shrink by 0.5 percent in both the fourth quarter of this year and the first quarter of next year. Two consecutive quarters of contraction is the traditional definition of a recession, Reuters reports.

"Our new forecasts assume gas prices at 150 euros/MWh," the bank said, adding that, combined with tensions in Italy, this would result in a 2 percent hit to eurozone GDP.

High gas prices will also push up overall inflation by 1.2 percentage points in the near term, although it will fall again next year due to a negative economic reaction and thus reduce the degree to which the ECB will raise rates.

"We expect the ECB to deliver another 50 basis points of hikes by year-end," JPMorgan said.

"The bigger call is about 2024 and beyond," JPMorgan said. "The GDP level will be lower and unemployment higher, which argues for a disinflationary impulse".