JPMorgan: The European Central Bank suggests that the threshold for implementing interest rate hikes is very high.

Morgan Stanley Private Bank strategist Madison Faller said in a report that the European Central Bank's policy statement on Thursday suggests that the threshold for the bank to raise interest rates is very high. After the European Central Bank maintained interest rates unchanged, she said that the European Central Bank's response function is "maximal flexibility." She said, given the uncertainty, market expectations for nearly three rate hikes before the end of the year seem premature. "Core inflation did not accelerate again in March, and long-term expectations are quite stable." She said that if there are no clearer spillover effects from rising energy prices, the risk seems to lean towards the market digesting fewer rate hikes. Morgan Stanley expects one rate hike this year, which could limit the euro's appreciation to around 1.18-1.20 USD. The euro rose 0.1% to 1.1693 USD.