ECB Rate Hike Expectations Appear Too High Amid Economic Weakness, Analysts Say on May 25

GateNews
According to analysts at Société Générale on May 25, market pricing for European Central Bank rate increases appears too aggressive relative to potential economic deterioration in the eurozone. Weak economic data released recently, including disappointing May eurozone PMI readings, has raised concerns about growth prospects. Data from the London Stock Exchange Group shows eurozone money markets are pricing in an 80% probability of a 25 basis point ECB rate hike in June, with market pricing fully reflecting expectations for two rate increases by year-end.
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