Central Banks
Traders Cast Doubt Over ECB’s Plan for Another Half-Point Hike
- Money markets pare bets on ECB hikes after SVB collapse
- ECB may be forced to rescind its promised move: Standard Bank
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Traders are pushing back against the European Central Bank’s own guidance and betting it could deliver the smallest rate hike this cycle when it meets on Thursday.
The odds of a half-point hike — once all but guaranteed — are around 50% after Silicon Valley Bank collapsed. That prompted the Federal Reserve to backstop the financial system with more liquidity, spurring an aggressive repricing of the outlook for interest rates globally.