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Traders Ramp Up BOE, ECB Rate Hike Bets After Hawkish Fed

  • BOE key rate seen rising to 5% by September 2023, swaps show
  • Money markets show ECB to raise interest rates to 3% by May
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Bank of England Raises Rate by 50 Basis Points in 5-4 Vote Split
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Traders are ramping up bets on how much further the European Central Bank and the Bank of England will raise interest rates as policy makers globally step up the fight against inflation. 

Swaps tied to central bank meetings show the ECB raising its deposit rate to 3% by May, double the level that was expected at the start of the month. In the case of the BOE -- which is expected to hike rates later on Thursday -- the key rate was briefly seen rising to 5% in September 2023.