RPT-MNI INTERVIEW2: Trump Stagflationary For EZ-ECB's Wunsch

MNI BRIEF: PBOC Launches Outright Reverse Repo For Liquidity

MNI: PBOC Net Injects CNY32.7 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1307 Mon; +2.71% Y/Y

CHINA PBOC CONDUCTS CNY241.6 BLN VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1307 MON VS 7.1090

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL OCT INDEX 70.5

MNI: BELGIUM OCT BNB BUSINESS SURVEY -12.8

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CANADA: Analysts Broadly Split Between 25bp or 50bp Cut In Dec

CANADA
Bank of CanadaGlobalCentral Bank NewsCanadaBulletMarketsFixed Income BulletsForeign Exchange BulletsRegionNorth America
  • The broad collection of communications from the BoC yesterday made it clear that it remains data dependent.
  • The market still attributes sizeable odds of a second 50bp cut in December though, currently seen as a broadly 50/50 call between a 25bp or 50bp cut. This likely embodies a view shared by TD Securities, that it only made sense to cut 50bp this week if the BoC is in a rush towards more neutral policy setting.
  • Our review of analysts sees a similar finding, with a rough split between 25bp and 50bp cut calls.
  • Analyst terminal rate expectations are all at the bottom of the BoC’s neutral range of 2.25-3.25%, mostly between 2.25-2.5% but RBC stand out with their 2.00% forecast. 

 

120 words

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.
  • The broad collection of communications from the BoC yesterday made it clear that it remains data dependent.
  • The market still attributes sizeable odds of a second 50bp cut in December though, currently seen as a broadly 50/50 call between a 25bp or 50bp cut. This likely embodies a view shared by TD Securities, that it only made sense to cut 50bp this week if the BoC is in a rush towards more neutral policy setting.
  • Our review of analysts sees a similar finding, with a rough split between 25bp and 50bp cut calls.
  • Analyst terminal rate expectations are all at the bottom of the BoC’s neutral range of 2.25-3.25%, mostly between 2.25-2.5% but RBC stand out with their 2.00% forecast.