Traders expect three ECB rate hikes this year
Traders are actively pricing in three ECB rate hikes this year amid inflation concerns. The probability of the first increase as early as next month is now estimated at 75%.
Ratio
Traders have significantly increased their bets on the European Central Bank raising interest rates. Amid growing concerns about inflation, market participants have now fully priced in three rate hikes of 0.25% each for this year.
The swap market, which is tied to the dates of ECB monetary policy meetings, currently anticipates a total rate increase of 79 basis points by the end of the year. For comparison, on Thursday, expectations were for a 70 basis point hike. The probability of the first rate increase as soon as next month is now estimated by traders at 75%.