🏦📊Interest Rate Probabilities: ECB Policy Rate Seen at 2% By May

**As seen in Macro Walk report 08/26/2022, subscribe at cablefxm.co.uk/reports

• Bets on central bank tightening were scaled up this week. Overnight index swaps price in additional 132 basis points of hikes from the Fed, up from last week 119. The Fed target rate is now seen at 3.75% by February, up from 3.61% last week

• In terms of rate hikes, the BoE stands as the most aggressive, with markets looking at 210 basis points of tightening by February. Markets also increased rate hike bets on the euro, the ECB is now expected to deliver 190bps by March, up from previous 160bps. OIS market now expect the key deposit rate to reach 2% by May