Traders Shift BOE, ECB Rate Bets Just Hours Before Decisions
The headquarters of the European Central Bank in Frankfurt.
Photographer: Alex Kraus/BloombergA fresh surge in energy prices is driving traders to bet on more interest-rate hikes from the Bank of England and European Central Bank — just hours before policymakers announce their latest decisions.
Money markets are now pricing more than two quarter-point hikes from the ECB in 2026, while traders see nearly 40 basis points of BOE monetary tightening by year-end — up sharply since Wednesday. While no changes to interest rates are expected today, investors will focus on the commentary from officials to glean insight into how the conflict has impacted their outlook.