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Euro zone money markets see more chance of ECB hike in early 2018 after French vote

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Reuters LONDON

LONDON (Reuters) - Euro zone money markets on Monday priced in a higher chance of a rise in European Central Bank interest rates after Emmanual Macron won the first round of the French presidential election.

Forward Eonia bank-to-bank rates dated for the ECB policy meeting on March 8 next year stand at around minus 30 basis points, about 6 bps above the Eonia spot rate of minus 36 bps.

Such a gap indicates markets are pricing in roughly a 60 percent chance of a 10 bps hike in the ECB's minus 0.4 percent deposit rate by next March.

Late last week, the gap suggested just a 20 percent chance of such a hike.

 

(Writing by Nigel Stephenson; Editing by Dhara Ranasinghe)

Disclaimer: No Business Standard Journalist was involved in creation of this content

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First Published: Apr 24 2017 | 1:02 PM IST

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