Financial markets are pricing in close to a 50% chance of another rate hike from the European Central Bank (ECB) in October, as Thursday's statement was perceived as hawkish.
Financial markets are now almost equally divided on whether the European Central Bank (ECB) will raise interest rates again next month, following what was perceived as a hawkish statement from the central bank on Thursday. LSEG data indicates that markets are pricing in a 49% chance of an ECB rate hike by October 29, an 89% chance by December 17 if no hike occurs by then, and a 36% chance that the deposit rate will reach 3% before Christmas. The ECB's decision on Thursday to raise rates by 25 basis points to 2.5% was in line with market expectations.
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Source:MarketWatch · Source Link
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