Santander CIB global head of economics Antonio Garcia Pascual says euro-area short-term rates are likely to trade within a confined range. Markets price the ECB deposit rate around 2.50–2.75%; Pascual says the range should remain stable provided oil prices stay within the ECB’s mild and baseline scenarios. Santander CIB sees tactical opportunities to go long the short end at current market levels. The ECB raised rates 25bp in June to a 2.25% deposit rate; markets expect policy to be left unchang

Santander CIB global head of economics Antonio Garcia Pascual says euro-area short-term rates are likely to trade within a confined range. Markets price the ECB deposit rate around 2.50–2.75%; Pascual says the range should remain stable provided oil prices stay within the ECB’s mild and baseline scenarios. Santander CIB sees tactical opportunities to go long the short end at current market levels. The ECB raised rates 25bp in June to a 2.25% deposit rate; markets expect policy to be left unchanged at Thursday’s decision.