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Markets — Monetary Policy — Economics — Banking — Inflation

Traders Cast Doubt Over ECB’s Plan for Another Half-Point Hike

Traders are pushing back against the European Central Bank’s plan for a half-point rate hike. Odds of a hike are around 50% after Silicon Valley Bank collapsed. Economists revise calls for the Fed's next steps, some say a pause in the cycle is possible.

1 min read
  • Traders are pushing back against the European Central Bank’s plan for a half-point rate hike this cycle.
  • Odds of a half-point hike are around 50% after Silicon Valley Bank collapsed.
  • ECB in a tough position: dialing back on its guidance for a half-point hike could diminish the bank’s credibility.
  • Traders see the ECB deposit rate peaking just above 3.40%, about 80 basis points lower than a week ago.
  • Economists revise their calls for the Fed’s next steps, with Goldman Sachs and Pacific Investment Management Co. saying a pause in the cycle is possible.
Traders Cast Doubt Over ECB’s Plan for Another Half-Point Hike
BloombergAlice Gledhill

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