(Bloomberg) -- Traders are ramping up bets that the European Central Bank will raise borrowing costs by the end of next year, adding pressure on policy makers as they gather for a rate decision on Thursday. 

Money markets expect the central bank to raise the deposit facility rate by 20 basis points to minus 0.3% by December 2022, spurred by mounting inflation expectations. 

The Bank of Canada was the latest major developed central bank to signal its intention to tighten policy with a nod to hiking interest rates on Wednesday, while the Bank of England is expected to lift borrowing costs by as much as 15 basis points next week. 

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