CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

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

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

CANADA: Some Division Around Balance Of Risks In BoC Minutes

CANADA
Bank of CanadaGlobalCentral Bank NewsCanadaBulletMarketsFixed Income BulletsForeign Exchange BulletsRegionNorth America
  • The BoC’s Summary of Deliberations for the Sep 4 decision when the BoC cut 25bps for a third consecutive meeting unsurprisingly showed officials agreed that the economy needs above-potential growth to ensure inflation doesn’t undershoot.
  • There was some division around whether price risks were tilting to the downside though.
  • "Some members took the view that the risks were balanced”, "some had become more concerned with the downside risks to inflation, particularly if the economy and labour market weakened further" and “members observed that the housing market could still pick up more quickly than expected.”
  • Gov. Macklem had discussed the risks to the inflation outlook as broadly balanced at the Sep 4 press conference.
  • The minutes lacked specific detail on whether a scenario of cutting interest rates by 50 basis points was discussed, a prospect Macklem hinted at during his press conference.
  • Can-US 2Y yield differentials are 0.5bp higher since the release (at -69.5bp for the lower end of the range over the past month) as GoC yields move sideways whilst US yields dip a touch ahead of the FOMC decision. 
178 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 BoC’s Summary of Deliberations for the Sep 4 decision when the BoC cut 25bps for a third consecutive meeting unsurprisingly showed officials agreed that the economy needs above-potential growth to ensure inflation doesn’t undershoot.
  • There was some division around whether price risks were tilting to the downside though.
  • "Some members took the view that the risks were balanced”, "some had become more concerned with the downside risks to inflation, particularly if the economy and labour market weakened further" and “members observed that the housing market could still pick up more quickly than expected.”
  • Gov. Macklem had discussed the risks to the inflation outlook as broadly balanced at the Sep 4 press conference.
  • The minutes lacked specific detail on whether a scenario of cutting interest rates by 50 basis points was discussed, a prospect Macklem hinted at during his press conference.
  • Can-US 2Y yield differentials are 0.5bp higher since the release (at -69.5bp for the lower end of the range over the past month) as GoC yields move sideways whilst US yields dip a touch ahead of the FOMC decision.