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)