Traders Price 25-Basis-Point BOE, ECB Hikes by September as Brent Tops $86
Updated
Updated · Bloomberg · Jul 14
Traders Price 25-Basis-Point BOE, ECB Hikes by September as Brent Tops $86
3 articles · Updated · Bloomberg · Jul 14
Summary
Money markets now fully price a quarter-point Bank of England rate hike by September for the first time in a month, with another move expected before year-end.
Brent crude’s jump above $86 a barrel after escalating US-Iran tensions revived inflation fears and pushed traders to raise tightening bets.
The European Central Bank is also seen delivering a 25-basis-point hike in September, with a second increase by year-end almost fully priced.
The repricing signals that energy-driven inflation risks are again shaping expectations for Europe’s major central banks.