Forward Eonia bank-to-bank rates dated for the ECB meeting on March 8 next year stood at around minus 0.25%, some 10 basis points above the Eonia spot 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 scheme. The ECB's deposit rate is currently minus 0.40%. Barclays analysts, for example, expect rate hikes to begin in 2018. Money market rates also suggest there is around an 80% chance of a 10-basis-point hike by the meeting on Jan 25, 2018 and a 60% chance by December 2017.

Source: Bangkok Post March 10, 2017 11:03 UTC