Markets expect more ECB rate hikes after strong economic data

Eurozone rate could reach 3.75%

Financial markets are pricing in further rate hikes by the European Central Bank following strong eurozone economic data releases.

Interest rates for the eurozone could reach an all-time high if this comes to pass, with the current rate of 2.5% not far below the record 3.75% that was in place in 2001 during the early days of the monetary union. Rate swaps markets indicate the likeliest path for the cost of borrowing over coming months. Swaps data from Bloomberg suggests investors now believe multiple ECB hikes are still to come, with the rate hitting 3.75% in the third quarter of this year, and staying there through the fourth quarter. This expected peak figure has moved up over the past month, with the high-poin...