Market participants seem convinced that the Federal Reserve (Fed) will still deliver at least a 25 basis points (bps) rate hike at its upcoming policy meeting on March 21-22. The bets were lifted by the US Consumer Price Index (CPI) report released earlier this week, which showed that inflation isn't coming down quite as fast as hoped. Furthermore, reports indicate that European Central Bank (ECB) policymakers are still leaning towards a 50 bps rate hike later this Thursday as the Eurozone economy is picking up strength and inflation is expected to remain high for years.
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