TREE NEWS reports: Money markets have turned more hawkish on the interest-rate outlook, diverging from European central bank officials. Swap-market pricing now shows traders expect the European Central Bank to raise rates four more times by 25 basis points each over the next 12 months, and the Bank of England to deliver five hikes of the same size, as surging energy prices revive inflation concerns.
Traders Bet ECB Will Hike Four More Times, BoE Five as Energy Prices Stoke Inflation
The gap between market pricing and central bank guidance is the real story here: traders are effectively betting that officials will be forced to tighten further, which matters most for rate-sensitive assets, currencies and any yield-bearing instruments whose appeal shifts with policy expectations. For crypto and RWA markets, a more hawkish rates path tends to compete with risk appetite, though the driver — energy-led inflation — is a macro shock rather than a crypto-specific one. Whether this hawkish repricing holds, or fades if energy pressures ease, is the open question.
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