Franklin Templeton's Zahn: ECB rate hike unlikely before 2020

David Zahn, Head of European fixed income at Franklin Templeton, was reported by Reuters, as saying that the European Central Bank (ECB) is unlikely to hike interest rates before 2020.

Key Quotes:

“The recent flare-up in Italy only reinforces our view that the ECB will extend the asset-buying programme into 2019. And, we think the likelihood of rate hikes is now pushed out much further into the future.

It was difficult to see interest rate hikes in the Eurozone before 2020.”

Meanwhile, according to ECBWATCH, Eurozone money markets price in 70 percent chance of a rate hike in June 2019, up from 50 percent earlier this week.