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Rate Hike Pricing Pared Back

ECB

ECB rate hike pricing has pulled back sharply in the last 30 minutes, with the Dec 2022 meeting rate now seen as low as 0.436% vs just above 0.50% at around 1520BST (and vs session high of 0.552%).

  • Comparatively, US implied rates fell only about 2bp, while UK rates remained stable.
  • Comes on the back of MNI's Policy piece which in part cites ECB sources downplaying Dutch central bank chief Knot's call for a possible 50bp hike.

Dec 2022 ECB Meeting Implied Rate %Source: BBG

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