Bank rout sees markets scale down chances of half-point ECB hike

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, March 15 (Reuters) - Money markets on Wednesday were pricing in a greater chance that the European Central Bank will only raise rates by a quarter point this week, as shares in Credit Suisse tanked, fanning concerns about the health of the European banking sector.


Investors put on Wednesday a 70% chance on the European Central Bank rising interest rates by 25 basis point when it meets on Thursday. Earlier in the day, they were pricing in a 90% chance of a 50-bps hike on Thursday. This probability had dropped to below 30% by Wednesday afternoon in Europe.

(Reporting by Joice Alves)

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