MNI: BRAZIL CENTRAL BANK HOLDS SELIC RATE AT 10.50%

MNI: Rough Transcript of Powell's July Press Conference

MNI: Comparison of Powell's Opening Statement - July vs June

MNI China Daily Summary: Wednesday, July 31

MNI: PBOC Net Injects CNY185.57 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1346 Weds; -1.39% Y/Y

EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 433.0M JUL 26 WK

MNI: US NAR JUN PENDING HOME SALES INDEX 74.3 V 70.9 IN MAY

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

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

Hawkish hold

BOE
  • With this sentence this is probably the most hawkish hold you could have had: "The Committee judged that, provided the incoming data, particularly on the labour market, were broadly in line with the central projections in the November Monetary Policy Report, it would be necessary over coming months to increase Bank Rate in order to return CPI inflation sustainably to the 2% target."
  • Combine that with the inflation rate at 1.95% (so almost at the 2% target) in 3 years under market rates (which assume Bank Rate at 1.25% in a year's time).
  • Obviously given how much was priced into the short sterling curve we have to see the strip move higher. And by waiting to see more data in December there is always the chance the data disappoints but its likely we are still going to see a fairly steep front-end curve (relative to a normal UK hiking cycle) when the market has found its new level.
HomepageBulletMarketsFixed 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.