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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.
MARKET INSIGHT
- The Bank of Canada’s 75bp hike to 3.25% last week took its policy rate into restrictive territory. It sees further hikes as being needed whilst assessing the effects of tighter monetary policy as they work through the economy.
- With household debt hovering just off extremely elevated highs of 185% of disposable income (link), housing will continue to be a sensitive area for assessing this passthrough.
- Existing home sales have fallen to 10% below pre-pandemic averages and are starting to correct for the tightness in the housing market - which the Bank currently sees as “pulling back as anticipated”.
- However, the tightness of sales compared to the stock rather than flow of inventories has helped limit the decline in house prices to just 7.5% from the peak whilst remaining 40% above Feb’20 levels, but as BMO point out, mortgage pre-approvals are sheltering borrowers from the latest 175bp of hikes since July and with at least a further 50bps expected to come.
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.
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