Free Trial

Goldman: Still Too Little Priced For 2024 BoC Easing vs US

CANADA
  • Goldman Sachs note that the BoC raised its overnight lending rate by 25bp to 5% last week, in line with our economists’ expectations and market pricing.
  • “Given the somewhat hawkish tone overall, our economists revised their terminal rates forecast upward to 5.25%, with one additional hike in October. Markets appear to be anticipating this to some extent, pricing roughly even odds of an additional hike by then.”
  • “The more interesting front-end pricing discrepancy, in our view, continues to be the limited amount of BoC easing priced for next year versus that seen for the Fed (where we think too much is priced). We had previously recommended fading this spread, and look to re-engage on better entry levels.”

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.