B · Normal
[Traders and the European Central Bank disagree on the intensity of interest rate hikes] September 15th, traders and European central bank officials are increasingly diverging in their views on the prospects for future interest rate hikes. Currency market expectations have become more hawkish. Therefore, the current pricing in the swap market shows that the European Central Bank will raise interest rates four times in the next 12 months, each time by 25 basis points, and the Bank of England will raise interest rates five times by the same amount. ECB officials believe that market bets on raising interest rates three times are too aggressive.
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