Economics
Traders Boost ECB, BOE Rate-Hike Bets as Energy Costs Surge
- Markets see full point of ECB hikes by October for first time
- Wagers indicate BOE will double its key rate by year-end
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Traders are betting the European Central Bank and the Bank of England will have to take bolder action to tame surging prices exacerbated by the fallout of Russia’s war in Ukraine.
For the first time Wednesday, money markets fully priced in a percentage-point of tightening by the ECB’s October meeting, according to swaps tied to the decision date. That would take the key rate to 1%, a level last seen more than a decade ago.