High stakes for ECB as eurozone economy slows sharply

Risk the ECB has already overtightened is significant, Citi economists say

Traders now price in a roughly 40% chance of a 25 basis point move in September compared with a more than 50% chance they saw earlier this week. 

Traders firmed up bets that the European Central Bank (ECB) would pause hiking interest rates in September, as sharp contractions in business activity pointed to deepening economic pain in the eurozone. 

Traders now price in a roughly 40% chance of a 25 basis point move in September compared with a more than 50% chance they saw earlier this week.