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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.
GLOBAL
- This is another ‘bear’ chart that shows that the global tightening cycle will accelerate the economic slowdown in the coming 6 to 12 months, therefore maintaining market uncertainty elevated in the medium term.
- Out of the 38 central banks tracked by the BiS, 24 raised interest rates this month to tame inflation and support the domestic currency.
- CBR is the only major central bank that cut rates this month following the emergency meeting this morning, lowering its benchmark rate by 300bps to support the economy.
- Hence, the blue line represents the net central bank hikes in May (23), which has historically acted as a strong ‘leading’ indicator of the global economic activity.
- The aggressive tightening cycle run by central banks in the past year is pricing in a significant fall in the global manufacturing PMI (‘proxy’ for real economic activity) in the coming year.
Source: Bloomberg/MNI
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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