- Analytics
- News and Tools
- Market News
- ECB: Money markets are now pricing two 25 bps rate hikes in 2022
ECB: Money markets are now pricing two 25 bps rate hikes in 2022
In a committed effort to counter inflation, the European Central Bank (ECB) is now expected to increase the benchmark interest rate to 0% this year, Bloomberg reports, citing the money markets’ expectations.
The bank’s key rate stands at minus 0.5% and has been negative since 2014.
Additional takeaways
“Money markets are now pricing two quarter-point hikes in 2022, compared with smaller than one such increase at the start of the month, according to interest-rate swaps.“
“Traders had first positioned for two 25-basis-point hikes in 2022 following the ECB’s February meeting, only to erase those bets amid concern the war would be a bigger drag on growth.”
The hawkish expectations for the ECB’s tightening were revived after the Fed delivered a hawkish rate hike last week. Meanwhile, the ECB hinted at accelerated reduction of asset purchases at its March 10 policy meeting.
Read: Lagarde speech: Not seeing elements of stagflation now
Market reaction
EUR/USD is moving back and forth around 1.1050, with the Ukraine crisis playing a spoilsport in the pair’s upside momentum. The spot is little changed on the day.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
