ECB’s Margin of Hike, Economic Forecasts to Take the Spotlight
- Traders more or less see a 75-basis point move on the cards
- Monetary authority may revise up its inflation forecast
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Here’s what rates and currency traders will be riveted on when the European Central Bank unveils its policy review today:
A majority of economists polled by Bloomberg forecast a 75-basis point move today, with some expecting a 50-basis point increase. Overnight indexed swaps, which couldn’t quite make up their mind as of the close of trading Wednesday, are now pricing in about an 89% chance of a 75-basis point move.