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ECB Traders See Historic Half-Point Rate Hike in December

European Central Bank headquarters in Frankfurt. 

European Central Bank headquarters in Frankfurt. 

Photographer: Alex Kraus/Bloomberg
Updated on

Traders have baked in bets that the European Central Bank will deliver the biggest interest-rate hike in two decades at their December meeting.

Money markets on Thursday priced in a 50 basis point increase to the bank’s deposit rate, making a move of that magnitude for the first time since 2000. In fact, traders are nearly factoring in the possibility that such a hike could come even sooner, at the bank’s October meeting.