Money markets once again ramp up ECB rate hike bets
LONDON (Reuters) - Euro zone money markets on Thursday brought forward bets for a European Central Bank rate hike, reflecting a shift higher in U.S. rate-rise expectations after strong inflation numbers on Wednesday.
Eonia money market futures dated to the European Central Bank's September 2022 meeting see a 100% chance of a 10 basis point rate rise. At the start of the week, market pricing had pointed to a full 10-basis-point move by December 2022.
Money market pricing also suggests investors are pricing in a strong chance of a second rate hike by the end of next year.
(Reporting by Dhara Ranasinghe; Editing by Rachel Armstrong)