Free Trial

BNY Mellon Sees 75bp Hike This Week

FED

BNY Mellon now looking for a 75bp hike from the Fed this week, following Friday's CPI report. Previously they'd seen 50bp hikes in June and July, then slowing to 25bp for the rest of 2022.

  • They are still looking for 50bp in July and a downshift in hiking pace to 25bp in September, but "we caution that data between now and the end of July could upend these expectations and motivate us move in favor of larger increases for the post-June meetings." (Their full preview will be out Tuesday.)
  • Current market pricing is for a larger-than-50bp hike for the June meeting (+57bp), implying a 25-30% chance of a 75bp hike.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.