ECB Rate Increase Less of a ‘Done Deal’ on Japan Aftermath

Investors and economists are paring bets that the European Central Bank will raise interest rates next month as the aftermath of Japan’s biggest earthquake overshadows prospects for the global economy.

Money-market futures fell, indicating investors are curbing expectations that the ECB will proceed with lifting borrowing costs after stocks, bond yields and commodities slumped on concern a nuclear disaster is unfolding in Japan. Economists at Nomura International Plc, Lloyds Bank Corporate Markets and Royal Bank of Scotland Group Plc said the ECB may wait to assess the impact on markets and the global economy.