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Traders Pare ECB Rate-Cut Bets, See Fewer Than 150bps This Year
Traders pared bets on interest-rate cuts from the European Central Bank and Bank of England following key inflation data in the region and an unexpectedly strong US jobs report. Money markets priced fewer than 140 basis points of monetary-policy easing by the ECB and less than 120 basis points by the BOE in 2024, according to swaps tied to the central bank meeting dates. It’s the first time since mid-December that traders bet on fewer than six and five quarter-point cuts respectively. Investors have been reassessing their expectations for monetary easing from major central banks since late last week, adopting a ... (full story)