Bets on higher interest rates from the European Central Bank may soon become a thing of the past – News Couple
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Bets on higher interest rates from the European Central Bank may soon become a thing of the past


(Bloomberg) –

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Fears of national shutdowns in Europe outweigh any concerns about inflation as traders scramble to offload bets that the European Central Bank will tighten policy next year.

Traders are now considering the scenario of no rate hike, after just one week of betting on a 20 basis point increase by December 2022. It comes after Austria said it would enter a nationwide lockdown from Monday, and Germany said it might consider a measure similar. Move as Europe seeks to deal with the re-emergence of the pandemic. spin palace casino

The decline also comes on the heels of comments from European Central Bank President Christine Lagarde, who said the central bank should not tighten monetary policy too soon – even in the face of “painful and unwanted” inflation.

Lagarde says ECB should not tighten despite ‘painful’ inflation

“It takes for granted that it takes some imagination to see a rate cut next year, but at some point the market needs to embrace the view of rate hikes for the whole of next year,” said Christoph Rieger, head of flat rate strategy at Commerzbank AG.

Memories of previous pandemic shutdowns are fresh in investors’ minds as they bet that a sharp rise in Covid cases will hamper nascent growth prospects. العاب 365

The prospect of easing is not out of the question for Rieger, who said that if a sudden spike in Covid occurs in the US this winter, “all market bets for next year are off. عجلة الروليت

(Adds the chart after the second paragraph, Lagarde’s comments in the third.)

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