Some European Central Bank (ECB) policymakers want to discuss a 0.75 percentage point rate hike at their September meeting, Archyde.com reported, citing people familiar with the matter. The identities of those involved have not been disclosed.
An ECB spokesman declined to comment to Archyde.com. A decision of 0.75 percentage points would be the ECB’s largest rate hike at a single meeting and would take the central bank’s policy rate to its highest level since November 2011.
The news prompted money markets to price in a 50% chance that the ECB would raise interest rates by 0.75 percentage points in September. German two-year bond yields, which are closely linked to the policy interest rate, rose by 18 basis points (bp, 1bp = 0.01%) to 1.05%, the highest level in about two months. The euro rose 1.2% against the dollar to $1.0009 at one point.
German 2-year bond yield trend
Source: Bloomberg
news-rsf-original-reference paywall">Original title:
news-rsf-original-reference paywall">Some ECB Officials Want to Talk 75 Bps Hike Next Month: Archyde.com(excerpt)
Bonds Slide as Traders Raise Bets on 75-Basis-Point ECB Hike (1)(excerpt)
(Add trends and chart images of government bonds and exchange rates.The article before the update has corrected the reference month of the interest rate level)