JPMorgan: Market pricing for European Central Bank rate hikes is believed to be too high.

Jefferies' Mohit Kumar said in a report that the market's expectation of the European Central Bank raising interest rates by nearly 65 basis points this year "makes no sense to us." The global economist stated that while there may be a valid argument for a preemptive rate hike due to inflation concerns, it is highly unlikely that the European Central Bank will embark on a series of rate hikes in an environment of slowing economic growth. Jefferies believes that even a single rate hike would be a policy mistake.