Expectations rise for ECB rate cut this year as bank-to-bank rates drop

Money market bets on the future rate of the euro over-night index average (Eonia), a key interest rate that is often cited as a forward indicator of ECB rate moves, have pushed the Eonia rate lower.

Forward Eonia rates for the date of the ECB's December meeting fell to -0.41% on Wednesday, which is eight basis points below the overnight rate of -0.33%.

This, suggested Reuters, indicated around an 80% chance of a further 10-basis point cut to the ECB's deposit rate by the end of the year, plus a 50% chance for a September cut and 30% for a July move.

Earlier this year, Draghi said he did not expect to make further rate cuts to try and bolster the EU recovery.