Investors scale back ECB rate hike bets after weak PMI - Reuters

Euro zone money markets are pricing less than a 60 percent chance of a 10 basis point interest-rate rise from the European Central Bank (ECB) by mid-2019, Reuters reports.

Key Details:

According to ECBWATCH, the difference between the overnight bank-to-bank interest rate for the euro zone (Eonia) and forward Eonia rates dated for the ECB’s June 2019 meeting was 5.8 basis points on Wednesday, down from 9 bps last week and 8 bps earlier this week. 

Analysts say that means investors are pricing in less than a 60 percent chance of a 10 basis point increase in the ECB’s deposit rate — the minimum it is likely to increase — from minus 0.4 percent currently.