ECB Rate-Cut Bets Fade Into Obscurity on Global Growth Outlook
- Marginal rate increase is priced over next year, swaps show
- Wagers come even as Lagarde says inflation spike is temporary
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The increments may be small, but money-market traders are pricing rate hikes in Europe again.
The European Central Bank’s deposit rate will rise by over one basis point in twelve months’ time, Eonia swaps show. That’s the highest reading in more than two years and a far cry from six months ago, when the market was positioned for 10 basis points of easing.