Money markets scale back ECB rate hike bets on coronavirus variant worries

The headquarters of the European Central Bank (ECB) in Frankfurt, Germany, March 12, 2016. REUTERS/Kai Pfaffenbach/File PhotoLONDON, Nov 26 (Reuters) – Euro zone money markets on Friday scaled back bets on a rate hike from the European Central Bank next year as news of a new coronavirus variant spreading across South Africa cast a shadow over the short-term economic outlook.Money market futures were pricing in roughly a 50% chance of 10 basis point rate hike from the ECB in December 2022, having fully priced in such a move earlier this week .That move was reflected by a smiliar pull back in rate hike bets in the United States and Britain. read more The latest COVID headlines news comes as Europe already battles a resurgent outbreak of the virus, triggering fresh restrictions in a numebr of countries.Register now for FREE unlimited access to reuters.comRegisterReporting by Dhara Ranasinghe
Editing by Rachel ArmstrongOur Standards: The Thomson Reuters Trust Principles.

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