Jefferies: ECB Likely to Implement Only One Rate Hike

Odaily News Jefferies global economist Mohit Kumar stated in a report that the market has fully priced in the ECB's 25 basis point rate hike tonight, which will also be the only rate hike by the ECB in this cycle. The next possible window for a rate hike is in September, when the new ECB staff projections will be released. Under an optimistic scenario, the war may have ended by then, with oil prices near $80, reducing the necessity for another rate hike. Even under a pessimistic scenario, where the war persists and oil prices approach $100, the European economy may be nearing or entering a recession, the ECB would not implement consecutive rate hikes against a backdrop of recession. (Jin Shi)