MNI BRIEF: Treasury's Yellen: Inflation Moving To Fed's Target

MNI BRIEF: China State Planner To Increase Trade-in Support

MNI China Daily Summary: Thursday, July 25

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

ECB Expected To Deliver Another 75bp

ECB
  • Markets have largely priced another 75bp hike by the ECB this week, with sell-side analysts also appearing to unanimously forecast such a move (based on the 17 previews we have seen).-
  • Note that some of the most hawkish members of the GC (Klaas Knot, Boštjan Vasle and Peter Kažimír) will not be voting at this week's meeting. Nonetheless, there is good reason to still expect a 75bp move:
  • 1. Inflation continued to surprise higher last month and is now just a hair's breadth away from double-digit territory.2. Having set the precedent in September of hiking in such large increments, the bar is somewhat lower for hiking in similar sized moves going forward.
  • 2. Several GC members have argued that policy tightening will continue even as economic activity slows.
  • 3. Even the more dovish GC members concede that further policy rate hikes are needed. Again, suggesting a particularly hawkish bias at the moment.
  • 4. Hiking at a slower pace would mean extending the timeframe for reaching 'neutral' (a level still not specifically defined by the ECB) when many on GC seem to want to get to this level as quickly as possible.
EM BulletHomepagemarkets-real-timeEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.