7 Jan 2016
Money markets pricing in 50% chance of ECB rate cut in March - Reuters
FXStreet (Mumbai) - As Reuters reports, Euro zone money markets see the chances of the European Central Bank (ECB) slashing its deposit rate in its March meeting at ‘coin flip’ levels.
Forward EONIA (Euro OverNight Index Average) rates dated for the ECB's meeting on March 10 ECBWATCH are trading at -0.30%, around 5 basis points below the overnight rate of -0.25 percent. Analysts said this indicated around half of a further 10 basis point cut is priced.
Commerzbank strategist Benjamin Schroeder, expecting the ECB to cut its depo rate to -0.40% in March from its current -0.30% noted, "Markets are reconsidering the ECB's stance and further rate cuts are entering expectations again."
Forward EONIA (Euro OverNight Index Average) rates dated for the ECB's meeting on March 10 ECBWATCH are trading at -0.30%, around 5 basis points below the overnight rate of -0.25 percent. Analysts said this indicated around half of a further 10 basis point cut is priced.
Commerzbank strategist Benjamin Schroeder, expecting the ECB to cut its depo rate to -0.40% in March from its current -0.30% noted, "Markets are reconsidering the ECB's stance and further rate cuts are entering expectations again."