October 19, 2018 / 6:49 AM / in a month

Euro zone markets push back rate hike bets as EU clamps down on Italy budget

LONDON, Oct 19 (Reuters) - Euro zone money markets are not fully pricing in an interest rate rise from the European Central Bank until October 2019, having earlier this week priced in a hike for September next year.

Money markets now suggest there is only a 75 percent chance of a 10 bps ECB rate hike in September 2019.

Investors have been increasingly pricing in the possibility that a tussle between Italy and the European Union on budget plans may force the ECB to be more cautious in removing stimulus. (Reporting by Abhinav Ramnarayan)

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