Institution: The European Central Bank is expected to raise interest rates in September, reflecting an excessive expectation of more rate hikes.

Nadia Gharbi of Pictet Wealth Management stated in a report that unless oil prices drop significantly in the coming weeks, there is a high possibility of the European Central Bank raising interest rates in September, and the market's expectations of further rate hikes may prove to be excessive. The senior economist said, "We still believe that current market expectations are exaggerated... considering the lack of a second-round effect, easing of tightness in the labor market, and inherent weakness in the economy, with energy shocks exacerbating this weakness." According to data from the London Stock Exchange Group, the money market currently reflects expectations of an additional tightening of nearly 70 basis points by June 2027.