Money markets ramp up bets on ECB rate cut next week

LONDON: Euro zone money markets now price in almost a 60% chance of an interest rate cut by the European Central Bank when it meets next week.

Eonia money market futures dated to the ECB's July 25 meeting price in 5.8 basis points worth of interest rate cuts, up from around 4 bps earlier in the week.

According to analysts, this is roughly the same as saying the markets price in almost a 60% chance of a 10 bps rate cut. A cut by September is fully priced in by markets as speculation about monetary policy easing in the near term grows.