Mark Matthews of Bank Julius Baer & Co said on Monday that he expects a 25 basis points hike in the key rate by the Federal Reserve in March.

In an interview to CNBC-TV18, Matthews said, “I do not think they are going to be raising rates 50 bps; I do not think they are going to raise rates as much as the Futures market anticipate either. They will probably raise 25 bps in March and then 25 bps perhaps in June and then pause and see the impact on the economy.”

On geopolitical issues, “The Federal Reserve and inflation; unfortunately, we will have to wait until around the summer to see tangible evidence that the inflation is coming down, which I believe we will barring Russian invasion of Ukraine,” he said.

Also Read: Remain positive on India, Budget 2022 good: Bank Julius Baer's Mark Matthews

Talking about Indian equity markets, Matthews said, “It is right at the top, I feel, of the league table when it comes to emerging markets because China is not there anymore.”

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