ECB Rates Bets Show 75 Basis-Point Hike Is Far From a Done Deal
This article is for subscribers only.
Traders are beginning to doubt the European Central Bank will deliver its biggest interest-rate increase in more than two decades this week amid mounting concerns about the health of the region’s economy.
Money markets scaled back rate hike expectations, putting the odds of a 75 basis-point move at about 65%, according to swaps tied to ECB meetings. That’s down from as high as 80% last week. Data Tuesday showed factory orders in Europe’s largest economy fell for a sixth month, adding to concerns over the outlook for growth.