JPM analyst frets over global rate hike frenzy

NEW YORK (Reuters) - The recent rush by a number of central banks to raise interest rates could create a risk to global growth in the next few months, a JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) analyst said on Monday.

"I think this is something we have to watch very carefully, especially if markets stay volatile this summer," Rebecca Patterson, currency strategist at JPMorgan, said at the Reuters Investment Outlook Summit.

"This past week South Africa, India, Turkey, Thailand were raising rates and there were hawkish comments from other central banks, such as Brazil and Sweden," Patterson said.

Those changes came on top of the European Central Bank's rate increase on Thursday, and prospects for a 17th consecutive increase by the U.S. Federal Reserve this month.

"There is a risk they win the battle, but they lose the war," she said. "The Fed is the one that people are focusing on, and it's the right focus -- but you can't ignore these other central banks."

The wide swathe of rate hikes could leave global liquidity conditions in the balance, Patterson said.

If central banks respond to market volatility with unexpected interest rate increases, "they risk exacerbating a global growth moderation and turning it into a slowdown," she warned.