Oliver Mangan: Is there light at the end of the rate hike tunnel?
Christine Lagarde, president of the European Central Bank, at a rates decision news conference in Frankfurt, Germany, on Thursday. Markets are a bit less sure that eurozone rates have peaked. They are not expecting a rate hike at the next ECB meeting in September. Picture: Alex Kraus/Bloomberg
Markets remain of the view in the aftermath of the last week’s Fed and ECB policy meetings — which saw them both raise interest rates by 25bps — that the rate hiking cycles in the US and eurozone have either drawn to a close or are very close to the end.
US futures contracts see Fed rates rising by just a further 9bps over the remainder of the year, bringing them up to 5.42%. This is still within the new 5.25-5.50% range for the fed funds rate and implies no further increase in official rates.
