(Bloomberg) -- It has taken three weeks, and numerous European Central Bank speakers, for the market to completely row back on its expectations for higher interest rates. At the March 9 meeting, President Mario Draghi's acknowledgment that ECB rate guidance was an “expectation” rather than a commitment prompted investors to prepare for higher rates, pricing in as much as 13 basis points of deposit-rate increases by April 2018, and a full 20 basis points by September 2018. Since then, however, policy makers have struck a more dovish tone, bringing money markets back in line with levels seen before the meeting.
To contact the reporter on this story: Stephen Spratt in London at sspratt3@bloomberg.net.
To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net, David Goodman, Keith Jenkins
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