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Money markets slash rate cut expectations after EU and Britain seal Brexit deal
Money markets further scaled back expectations for interest rate cuts from European Central Bank of England after Brussels and London announced that they had agreed a new Brexit deal.
Eurozone money markets have now priced out a 10 bps rate cut at the ECB’s December meeting when negotiations were nearing a draft Brexit deal.
The chance of a 25 basis point rate cut from the Bank of England in December 2020 fell from 76% to 60% on Tuesday.
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