October 15, 2019 / 3:49 PM / a month ago

Money markets pare bets on ECB, BOE rate cuts as Brexit deal hopes grow

FILE PHOTO: The logo of the European Central Bank outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach

LONDON (Reuters) - Money markets scaled back expectations for interest rate cuts from the European Central Bank and the Bank of England on Tuesday, after news that UK and EU negotiators are nearing a draft Brexit deal.

Euro zone money markets now price a roughly 10% chance of a 10 basis-point rate cut from the ECB at its December policy meeting, compared to a 20% probability on Friday, according to EONIA money market futures. ECBWATCH

The chance of a 25 bps rate cut from the Bank of England fell to 76%, compared to around 90% on Friday. BOEWATCH

Reporting by Yoruk Bahceli and Saikat Chatterjee; editing by Sujata Rao

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below