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Euro zone markets push back rate hike bets as EU clamps down on Italy budget

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Euro zone markets push back rate hike bets as EU clamps down on Italy budget

Euro zone markets push back rate hike bets as EU clamps down on Italy budget
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KAI PFAFFENBACH(Reuters)
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LONDON (Reuters) - Euro zone money markets are not fully pricing in an interest rate rise from the European Central Bank until October 2019, having earlier this week priced in a hike for September next year. <ECBWATCH>

Money markets now suggest there is only a 75 percent chance of a 10 bps ECB rate hike in September 2019.

Investors have been increasingly pricing in the possibility that a tussle between Italy and the European Union on budget plans may force the ECB to be more cautious in removing stimulus.

(Reporting by Abhinav Ramnarayan)

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