ECB interest rate hike likely delayed to mid-2020

The ECB not only will fail to raise interest rates this year, but won’t move until mid-2020, well beyond the timing suggested by the bank’s policy guidance, money market pricing implies.

The central bank, which ended quantitative easing last month, has said rates will remain unchanged through the summer of 2019, to support the eurozone economy and increase inflation. But a deteriorating economic outlook has led to aggressive repricing of market expectations in recent weeks.