Traders Brace for Shock-and-Awe Hikes From Major Central Banks

  • Money markets show chance of half-point hikes from Fed, BOE
  • European traders brace for quarter-point increases from ECB
WATCH: ECB Governing Council Member Klaas Knot said in an interview Sunday that he sees an interest rate hike coming from the central bank as soon as the fourth quarter of this year.Source: Bloomberg
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A dramatic week of central-bank meetings and economic data has changed the game for global rate-hike bets.

Not only are money-market traders boosting wagers on the number of increases by major central banks, but also the size of each potential move, reflecting the prospect that policy makers will front-load tightening cycles to combat inflation.