ECB Rate Cuts Less Likely: Traders Adjust Expectations

Traders are dialing back their expectations for future interest rate cuts by the European Central Bank (ECB), according to BlockBeats. The market now anticipates a more modest 23 basis point cut this year, down from 32 basis points anticipated before Thursday’s ECB decision. This shift is reflected in short-term bond yields, with two-year German bond yields rising by 7 basis points to 1.87%. This adjustment comes on the heels of comments from ECB President Christine Lagarde who indicated that the central bank’s rate-cutting cycle is likely nearing its end.