LONDON, Nov 6 (Reuters) - Financial markets expect the European Central Bank to slash interest rates more aggressively on Thursday than they had previously forecast, after the Bank of England shocked markets with a cut of 150 basis points.
Figures derived by EONIA contracts suggest the ECB will cut rates at its 1245 GMT policy decision by up to a full percentage point, around 25 basis points more than many had predicted before the UK central bank's move.
Looking ahead, EONIA pricing indicates ECB policy rates troughing at around 2.25 percent in March, versus 2.5 percent before the UK news.
Royal Bank of Scotland economists changed their ECB rate call to 100 basis points of easing from its previous prediction of 50 basis points.
"The ECB has got to do more now than 50 basis points," said a market strategist at another UK bank, referring to the consensus before the Bank of England's surprise move.
