Traders See ECB’s Window to Hike Narrowing Before It Even Starts
- Markets have pared bets on ECB tightening in the coming months
- Euro’s struggles set to persist as possible gas cutoff looms
The European Central Bank (ECB) headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Investor fears are rife that the European Central Bank is running out of runway to raise interest rates before it’s even begun.
Combating the quickest inflation since the euro’s introduction, officials plan to kick off a “sustained” cycle of hikes on Thursday with a quarter-point increase -- the first since 2011 as years of stimulus finally draw to a close.