ECB's Kazaks pushes back on rate cut bets as core prices rise

Money markets expect the ECB to raise the rate it pays on bank deposits by nearly 150 basis points by summer

Kazaks, generally seen as a policy hawk, added rates should rise "well into restrictive territory"

European Central Bank policymaker Martins Kazaks is pushing back on investor bets that the ECB will cut interest rates by the end of this year, saying it would take a deep recession for borrowing costs to be lowered.

Money markets expect the ECB to raise the rate it pays on bank deposits by nearly 150 basis points by the summer before reversing course in late 2023 and next year, likely implying a downturn in growth and inflation.