(Bloomberg) -- Traders are paying heed to a growing chorus of European Central Bank policy makers calling for interest rates to rise faster to get a grip on double-digit inflation. 

Money markets are wagering the deposit rate will increase to 3.5% by July, according to swaps tied to policy meeting dates. That implied peak has moved 60 basis points higher since the ECB’s last decision on Dec. 15, when it increased rates to 2%, and would leave official borrowing costs at the highest since 2001. 

ECB President Christine Lagarde followed up on the fourth successive rate increase last week with a warning to investors to prepare for a long-running campaign of similar moves. Fellow policy maker Yannis Stournaras on Thursday was the latest to voice his view that the rate could rise a further one percentage point to 3% by March, which compares to 94 basis points currently priced. 

©2022 Bloomberg L.P.