Traders See ECB Raising Its Key Rate to Zero in October
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Traders are wagering the European Central Bank will raise its key interest rate to zero two months earlier than previously anticipated after data showed Spanish inflation accelerated more than expected in March.
Money markets are betting the ECB will raise the deposit rate by 50 basis through October, compared with December before the release. Spanish inflation surged 9.8% from a year ago in March, the fastest rate in almost four decades.