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Traders Pare ECB Rate Bets to Below Quarter-Point Hike in 2026

Traders Pare ECB Rate Bets to Below Quarter-Point Hike in 2026
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Traders Pare ECB Rate Bets to Below Quarter-Point Hike in 2026 Traders are reappraising the scope for the European Central Bank to lift interest rates as sliding oil prices reduce risks of sticky inflation. For the first time since April, markets are no longer pricing in a full quarter-point rate increase that would take the key rate to 2.5% before the end of 2026.

Traders Pare ECB Rate Bets to Below Quarter-Point Hike in 2026 Traders are reappraising the scope for the European Central Bank to lift interest rates as sliding oil prices reduce risks of sticky inflation. For the first time since April, markets are no longer pricing in a full quarter-point rate increase that would take the key rate to 2.5% before the end of 2026. Such a hike was baked in two weeks ago, before ECB policymakers raised the deposit rate to 2.25%. [Image text:] EUROPEAN CENTRAL BANK EUROSYSTEM
Pare ECB Rate Bets (ORG) the European Central Bank (ORG) ECB (ORG)
Originally published by Bloomberg Markets Read original →