Money Markets Scale Back ECB Rate Hike Bets on Coronavirus Variant Worries

Money Markets Scale Back ECB Rate Hike Bets on Coronavirus Variant Worries
The headquarters of the European Central Bank (ECB) in Frankfurt, Germany, on March 12, 2016. Kai Pfaffenbach/Reuters
|Updated:

LONDON—Euro zone money markets on Friday scaled back bets on a rate hike from the European Central Bank next year as news of a new coronavirus variant spreading across South Africa cast a shadow over the short-term economic outlook.

Money market futures were pricing in roughly a 50 percent chance of 10 basis point rate hike from the ECB in December 2022, having fully priced in such a move earlier this week.