(Bloomberg) -- Investors have pared back pricing on the prospect of a rate cut from the European Central Bank.
Money markets now see a slimmer chance of a reduction in the benchmark deposit rate anytime before July 2020, compared with March 2020 that was priced in going into the ECB's policy review. While a full 10-basis point cut that was factored in earlier, they now see odds of an eight basis point move.
Meanwhile, five-year, five-year inflation swaps in the euro area have fallen 4 bps to 1.24%, approaching a record low.
To contact the reporter on this story: John Ainger in London at jainger@bloomberg.net
To contact the editor responsible for this story: Ven Ram at vram1@bloomberg.net
©2019 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
