Vanguard’s Koutny Sees ECB Hiking Even If Iran Ceasefire Holds

Sticky inflation will force the European Central Bank to lift interest rates twice in the coming months, even if a ceasefire deal between the US and Iran holds, according to Vanguard Asset Management Ltd.’s Ales Koutny.

If oil averages around $100 until summertime, hikes of 25 basis points in June and July would be “a strong probability,” according to Koutny, head of international rates at the US asset manager’s active funds. Oil at $95 a barrel would still be “hiking territory for central banks,” he said.