Traders Now See ECB Hiking Rates in 2026 as Hawkish Bets Grow
Summarize this article with:
Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Traders are betting on a greater than 50% chance that the European Central Bank will hike interest rates in 2026, as this week’s hawkish remarks by policymaker Isabel Schnabel continue to reverberate.Money-market swaps now imply 13 basis points of ECB policy tightening by December next year. That’s a turnaround from expectations of a rate cut just last week, following Monday’s comments from Schnabel that she’d be comfortable with the next move being a hike.