Finance
Money markets once again ramp up ECB rate hike bets
Published by maria gbaf
Posted on November 18, 2021
1 min readLast updated: January 28, 2026
Global Banking & Finance Review®
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Published by maria gbaf
Posted on November 18, 2021
1 min readLast updated: January 28, 2026
Euro zone money markets now expect an ECB rate hike in September 2022, influenced by U.S. inflation data. Investors also foresee another hike by the end of next year.
LONDON (Reuters) – Euro zone money markets on Thursday brought forward bets for a European Central Bank rate hike, reflecting a shift higher in U.S. rate-rise expectations after strong inflation numbers on Wednesday.
Eonia money market futures dated to the European Central Bank’s September 2022 meeting see a 100% chance of a 10 basis point rate rise. At the start of the week, market pricing had pointed to a full 10-basis-point move by December 2022.
Money market pricing also suggests investors are pricing in a strong chance of a second rate hike by the end of next year.
(Reporting by Dhara Ranasinghe; Editing by Rachel Armstrong)
The article discusses the anticipation of an ECB rate hike by Euro zone money markets, influenced by recent U.S. inflation data.
The increase in rate hike bets is due to strong U.S. inflation numbers, which have shifted expectations for ECB policy changes.
The ECB rate hike is expected by September 2022, with a possibility of a second hike by the end of next year.
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