Traders Are Betting on Fewer Interest-Rate Cuts Across the Globe

From Australia to Europe and the US, traders are betting that monetary easing from central banks will slow or stop altogether.

Money markets are now pricing in almost no prospect of further interest-rate cuts from the European Central Bank, and around a 30% chance of a hike by the end of 2026. In Australia, central bank Governor Michele Bullock on Tuesday ruled out further easing to leave swaps implying almost two quarter-point increases by the end of next year.