Interest Rates

Markets pare ECB rate cut expectations on the back of strong French economic data

French manufacturing and services data beat economists’ expectations leading to more muted rate-cutting expectations

Traders have since damped their wagers on cuts by global central banks in light of fresh economic data from France. Picture: Kirill Kudryavtsev/AFP via Getty Images

Strong economic activity in France has spurred markets to pare back their expectations of how much the European Central Bank (ECB) could cut rates this year.

Money markets are now betting on fewer than four 0.25 per cent interest rate cuts by the central bank this year after the release of new French economic data.

Traders see 94 basis points of monetary policy easing, the least since November, with the first such reduction expected by ...