Rate hikes back on agenda as banking turmoil eases

A rally in global bank shares and, significantly, for eurozone government bond yields, may signal that hefty official hikes in interest rates are back on the cards.

As recently as last weekend, the ECB was widely expected to follow through with a further hefty rate increase of 50 basis points, or half a percentage point, when it meets next. Picture: Michael Probst

The yields or interest rates for Irish and other eurozone government bonds headed higher again, a sign that investors are betting the European Central Bank (ECB) may be forced to continue to hike rates despite the turmoil that has enveloped global banks.

As recently as last weekend, the ECB was widely expected to follow through with a further hefty rate increase of 50 basis points, or half a percentage point, when it meets next.