ECB Deposit Rate Climbed to 80% Chance of Rate Hike

The European Central Bank is most likely to raise its deposit rate with 80% chance on December meeting as shown in the Eurozone money market on Friday. This is higher compared to the previous 60% last week. Eswald Nowotny, the Governor or National Bank of Austria and a member of the ECB, said that the central bank does not have a decision yet and most likely be later this year before or after its bond purchase program.

On the other hand, the money market rate hike of 90% is already expected in the market for the upcoming hike in March. Currently, the deposit rate is set at -0.40% while the market is already preparing for the expected 80 percent of 10 basis points increase in ECB deposit rate in December as the ongoing bond program is about to end.