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Wunsch Talks Down Rate Cut Pricing

ECB

In an interview with Bloomberg, ECB's Wunsch states that bets on rate cuts risk prompting the ECB to hike instead, noting that markets are optimistic to rule out further hikes. Wunsch adds that rates should stay unchanged in both December and January.

  • Worth recalling our ECB policy exclusive piece from late last week in light of those Wunsch comments:
  • "European Central Bank policymakers are keen to ensure markets do not price in rate cuts prematurely, and will continue to stress lingering upside risks to inflation in coming weeks even as policy looks set to remain unchanged in December and possibly for some months afterwards, Eurosystem sources told MNI."
  • Full piece is here: https://marketnews.com/mni-sources-market-pricing-...

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