Market expect 25bps ECB rate hike over next 12 months

Euribor rates

 

Euribor interest rate –

1 month

-0.373 % 07-03-2017
Euribor interest rate –

3 months

-0.331 % 07-03-2017
Euribor interest rate –

6 months

-0.271 % 07-03-2017
Euribor interest rate –

9 months

-0.198 % 07-03-2017
Euribor interest rate –

12 months

-0.157 % 07-03-2017

The 12 month interest rates stand at -0.157%. The current ECB deposit facility rate is -0.4%, This means market expects the ECB to hike rates by 25 bps in the next 12 months.

In my opinion, there is a risk that the rate hike will be delayed to Q4, 2018 as taper would put downward pressure on the inflation expectations.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s