LONDON, March 10 Investors now expect the
European Central Bank to raise interest rates by March 2018,
according to money market pricing.
Forward Eonia bank-to-bank rates dated for the ECB meeting
on March 8 next year have risen to around minus 0.25 percent,
some 10 basis points above the overnight rate of minus 0.35
Analysts say this gap suggests markets are pricing in a 10
basis point hike in the ECB's deposit rate by next March,
shortly after the scheduled end of the ECB's current bond-buying
The ECB's deposit rate is currently minus 0.40 percent
These money market rates also suggest there is around an 80
percent chance of a 10-basis point hike by the meeting on
January 25, 2018.
(Reporting by John Geddie; Editing by Jamie McGeever)