Free Trial
BOJ

Fixed Rate Operation Offer

US TSY FUTURES

Blocks In TY

AUSTRALIA DATA

Strong Import Growth Reflect Robust Domestic Demand

KRW

Won Outperforming Broader Dollar Pullback

AUSSIE BONDS

Meandering Through Early Trade

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Hard to see more than another 75bp of hikes from here

BOE
  • Based on that at first take, the MNI Markets team is far from convinced the MPC will hike in December. Maybe 50bp in Sep, 25bp in Nov then stop (cumulatively another 75bp). Markets are still looking for 120bp more by March - that seems too high to us.
  • Neutral rate is thought to be around 2.00%. Another 75bp from here would put us 50bp above that level (some even consider the neutral rate lower). The bar to hiking more will be higher when we pass the neutral rate, particularly with those MPR 3-year inflation forecasts...
94 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Based on that at first take, the MNI Markets team is far from convinced the MPC will hike in December. Maybe 50bp in Sep, 25bp in Nov then stop (cumulatively another 75bp). Markets are still looking for 120bp more by March - that seems too high to us.
  • Neutral rate is thought to be around 2.00%. Another 75bp from here would put us 50bp above that level (some even consider the neutral rate lower). The bar to hiking more will be higher when we pass the neutral rate, particularly with those MPR 3-year inflation forecasts...