Santander CIB Expects Eurozone Short-Term Rates to Remain Range-Bound

According to Jin10, Antonio Garcia Pascual, head of global economics at Santander CIB, said eurozone short-term rates are expected to fluctuate within a range. He said market consensus expects the European Central Bank deposit rate to stay between 2.50% and 2.75%, and that this range is expected to remain stable as long as oil prices stay within the ECB's assumptions for its mild and baseline scenarios. Pascual said Santander CIB again sees an opportunity to build tactical long positions in short-term rates at current market levels. The ECB raised rates by 25 basis points in June, taking the deposit rate to 2.25%, and markets expect the central bank to leave rates unchanged when it announces its monetary policy decision on Thursday.