Jefferies’ Mohit Kumar Says Oil Price Drop Has Not Been Fully Priced Into Rates Markets

Jefferies Group analyst Mohit Kumar said interest-rate markets have not quickly priced in expectations tied to the recent decline in oil prices, despite the drop in crude. According to ChainCatcher, citing a report referenced by Jinshi, Kumar said markets have been focusing on increased traffic through the Strait of Hormuz, and that oil’s decline has been larger than expected. Jefferies said one of the main impacts of a U.S.-Iran agreement is that major global central banks may no longer need to raise interest rates. The firm maintained its view that the Federal Reserve will not raise rates this year, and that the Fed’s next move would be a rate cut rather than a hike.