Traders Pare ECB Cut Bets After US CPI, All Eyes on Lagarde

Markets price 79 basis points of easing from ECB in 2024
Central bank expected to hold rates steady, signal cut

WATCH: The European Central Bank is set to keep borrowing costs on hold for a fifth meeting while further readying the ground for cuts to begin in June. Lizzy Burden reports from Frankfurt.Source: Bloomberg

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By Alice Gledhill and Alice Atkins

April 10, 2024 at 2:06 PM UTC

Updated on

April 10, 2024 at 3:23 PM UTC

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Traders pared bets on European Central Bank interest-rate cuts after US inflation topped forecasts, with markets now turning their attention to President Christine Lagarde’s remarks on Thursday.

Money markets priced 79 basis points of monetary easing from the ECB this year, compared to 86 basis points at Tuesday’s close. The chance of a first quarter-point move in June fell to about 80% after being fully priced last week.