Eurozone interest rate cut unlikely

THE European Central Bank’s efforts to halt the euro’s gains against the dollar and the Federal Reserve’s preparation for higher borrowing costs have wiped out expectations for a rate cut in Europe, futures trading suggests.

Interest-rate futures contracts show traders and investors anticipate three-month borrowing costs will be higher in March than now.

It costs 2.09% to borrow for three months today, compared with a rate of 2.10% on the contract for March settlement. The ECB has held its main refinancing rate at 2%, the lowest in more than half a century, since June.