As global oil and gas prices rise and the market continues to be wary of the risk of inflation, traders have increased their bets on the ECB's interest rate hike. Currently, it is expected to raise interest rates four times by the end of next year. The swap market currently includes expectations of a cumulative tightening of about 90 basis points until December 2027, which will push ECB deposit interest rates to 3.25%. This is the largest rate hike taken into account by the market during this austerity cycle. Traders have also increased their bets on the Bank of England's interest rate hike. The cumulative tightening is expected to be around 90 basis points by the end of 2027, the highest since March. This will push the Bank of England's key interest rate to around 4.75%.

As global oil and gas prices rise and the market continues to be wary of the risk of inflation, traders have increased their bets on the ECB's interest rate hike. Currently, it is expected to raise interest rates four times by the end of next year. The swap market currently includes expectations of a cumulative tightening of about 90 basis points until December 2027, which will push ECB deposit interest rates to 3.25%. This is the largest rate hike taken into account by the market during this austerity cycle. Traders have also increased their bets on the Bank of England's interest rate hike. The cumulative tightening is expected to be around 90 basis points by the end of 2027, the highest since March. This will push the Bank of England's key interest rate to around 4.75%.