ECB’s Wunsch: Bets on rate cuts risk prompting rate hikes instead

  • Markets are optimistic to rule out further rate hikes
  • But rates should stay unchanged in December and January

The headline remark sounds like a warning until you read the last comment that he sees rates staying unchanged in December and January. Policymakers have already ruled out any change in December previously but Wunsch is now extending that out to January, so that just fits with the view that markets are convinced that the ECB is already done.

This article was written by Justin Low at www.forexlive.com. Source