Financial associated press commentary: the conflict between Russia and Ukraine will increase the variable of interest rate hike by European and American Central Banks

Due to the sudden changes in the situation in Ukraine and other factors, there is great uncertainty in the policy of the global central bank and the trend expectation of the capital market, and the expectation of raising interest rates has shifted from hawks to doves. Some signals show that the market's expectation of the Fed raising interest rates by 50 basis points in March is rapidly ebbing. The core concern of the market is that the expectation of economic recession caused by high oil prices may slow down the pace of interest rate hikes by European and American central banks. If the situation escalates further, central banks will inevitably take relevant impacts into account, launch more measures to stimulate the economy, and tighten liquidity targets will be forced to take a secondary position. Under the seemingly contradictory dual policy objectives of stimulating the economy and reducing inflation, how to grasp the strength and timing will be a difficult problem for central banks of all countries, especially those in Europe and the United States. Whether the interest rate hike is slowed down or not, the pace and intensity of interest rate hikes by the Federal Reserve and the European Central Bank will face reassessment.