J.P. Morgan Now Expects Two ECB Rate Hikes Amid Inflation Pressures 
RBA Set to Hike Rates Again Amid Inflation Surge and Global Uncertainty 
China Holds Benchmark Loan Prime Rate Steady for Tenth Consecutive Month 
Paraguay Central Bank Holds Interest Rate at 5.5% Amid Slowing Growth 
Goldman Sachs Delays Bank of England Rate Cut Forecast Amid Middle East Inflation Risks 
Bank of Japan Eyes April Rate Hike Despite Inflation Dip, ING Says 
Market should listen!
Several policymakers in past several days, weeks have warned about June meeting being alive and there could be two or three rate hikes on the table. Names include, Boston FED chief Rosengren, Kansas city FED Chief Esther George, San Francisco FED President Williams and Atlanta city FED supreme Lockhart. Now Bill Dudley, President of New York city FED, and a permanent voting member in FOMC joined these relative hawks in tabling the summer hikes.
Like his colleagues, Mr. Dudley felt too that market is over pessimistic in their hike expectations. While the members are warning two or three hikes, Market is still pricing one and that in July and marginally. He expects second quarter to be stronger compared to first one, which will be sufficient for FED to hike in summer.
However, he maintained Federal Reserve’s official position that any hike will be data dependent and in regard to that policymakers will have to gauge the impact of British referendum over financial markets and economy over the coming weeks.
Dollar index is currently trading at 95.3, up 0.02% so far today.
