Woofun AI reports that BNP Paribas chief economist Isabel Mateos y Lago stated the likelihood of a Federal Reserve rate increase in July has declined. Short-term interest rate futures now price in a roughly 20% probability for a hike at the July 29 meeting, down from 33% prior to the latest non-farm payroll release. While the market anticipates a 25 basis point hike this year, any action is expected no earlier than December. Regarding the European Central Bank, Lago indicated that while a September hike remains the baseline expectation, Governing Council members did not rule out skipping it. She warned that energy supply normalization could take over six months, potentially accelerating eurozone inflation, though consumer price pressure outside energy-affected regions should remain limited.