Operators price increase of 0.75 pp in interest rates by the ECB until September

Money markets increased their bets on interest rate hikes by the European Central Bank (ECB) on Wednesday (8) to price in a cumulative increase of 0.75 percentage point through September.

With the bank expected to start raising rates in July, traders now expect the moves to include a rare 0.50 point hike in a single meeting through September, anticipating the October outlook as calculated on Friday. thursday (3).

The next ECB monetary policy meeting will be held on Thursday (9).

Traders have steadily increased their bets on ECB hikes after higher-than-expected inflation data last week, which boosted arguments in favor of bigger moves by the central bank. Several officials said they are open to a 0.50 point move.

“It seemed inevitable to me that 50 basis point bullish bets would become more popular given that it is widely understood that the ECB is behind the curve and that other central banks have also started moving in 50-point increments,” he said. Antoine Bouvet, senior rate strategist at ING, referring to Australia’s central bank.

The Australian central bank raised interest rates by 0.50 percentage point on Tuesday (7).

Source: CNN Brasil

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