Yet, central bank support for Credit Suisse caused another rethink on Thursday, with traders pricing in a roughly 50% chance of a 50 bps hike and a 50% chance of a 25 bps increase. (Reporting by Harry Robertson; Editing by Dhara Ranasinghe)
LONDON, March 16 (Reuters) - Traders on Thursday began
to expect a roughly 50% chance of a large, 50 basis point (bps)
interest rate hike from the European Central Bank (ECB) later in
the day, after Credit Suisse received a $54 billion lifeline.
Pricing in derivatives markets on Wednesday showed
traders had rapidly dialled down bets that the ECB would hike by
50 bps this week, as Credit Suisse shares plunged and dragged
banking stocks across Europe lower.
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