The Zhitong Finance App learned that as international energy prices continue to rise, increasing market concerns that inflation will continue to be high in the coming year, traders are drastically increasing their bets on further interest rate hikes by the European Central Bank (ECB) and the Bank of England (BOE). The interest rate swap market currently predicts that by the end of 2027, both central banks may increase interest rates by a total of about 90 basis points. However, some investors and Wall Street institutions believe that the market may have taken too much into account future interest rate hikes.

The Zhitong Finance App learned that as international energy prices continue to rise, increasing market concerns that inflation will continue to be high in the coming year, traders are drastically increasing their bets on further interest rate hikes by the European Central Bank (ECB) and the Bank of England (BOE). The interest rate swap market currently predicts that by the end of 2027, both central banks may increase interest rates by a total of about 90 basis points. However, some investors and Wall Street institutions believe that the market may have taken too much into account future interest rate hikes.