Massimo Spadotto, head of fixed income at Eurizon, said a deposit rate rise to 2.75% at one of the ECB's final two meetings this year is entirely possible. He added another hike should be regarded as the base case, though it is not guaranteed and will depend largely on commodity-price moves driven by developments in the Middle East. Spadotto said markets have already fully priced two further ECB rate hikes this year; consequently any actual hikes are unlikely to pressure markets and could trigge

Massimo Spadotto, head of fixed income at Eurizon, said a deposit rate rise to 2.75% at one of the ECB's final two meetings this year is entirely possible. He added another hike should be regarded as the base case, though it is not guaranteed and will depend largely on commodity-price moves driven by developments in the Middle East. Spadotto said markets have already fully priced two further ECB rate hikes this year; consequently any actual hikes are unlikely to pressure markets and could trigger a sell-the-rumor, buy-the-fact reaction.