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Suddenly a half-point ECB hike isn't guaranteed after bank collapses in U.S. and share price slides in Europe

Last Updated: March 16, 2023 at 5:03 a.m. ET First Published: March 14, 2023 at 8:09 a.m. ET European Central Bank (ECB) President Christine Lagarde adjusts her glasses as she delivers a speech during an event on the occasion of International Women’s Day, at the WTO headquarters in Geneva on March 8, 2023. Fabrice Coffrini/Agence

suddenly-a-half-point-ecb-hike-isn't-guaranteed-after-bank-collapses-in-us.-and-share-price-slides-in-europe

European Central Bank (ECB) President Christine Lagarde adjusts her glasses as she delivers a speech during an event on the occasion of International Women’s Day, at the WTO headquarters in Geneva on March 8, 2023.

Fabrice Coffrini/Agence France-Presse/Getty Images

Market expectations for a half-point rate hike by the European Central Bank are changing on the eve of the decision.

Now, the implied rate hike for Thursday’s meeting is 35 basis points — basically meaning it’s a 50-50 decision as to whether the ECB will lift rates by a half point, which the central bank had all but promised heading into it.

Credit…

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