FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

JPM Brings Forward Rate Liftoff To Jan

CANADA
  • JPM now expect the Bank of Canada to hike 25bps to 0.5% at the Jan 26 meeting.
  • This leaves a total of five rate hikes this year, “at every MPR meeting when the Bank revises its outlook and one in June 2022”, with the policy rate at 1.5% by the end of 2022.
  • They also expect “the Bank will begin some modest run off of the balance sheet in 2H22” although a more aggressive move of selling balance sheet assets is “unlikely in 2022”.
  • The drivers of the rate call are the Bank leaning “into concerns that the output gap is closing more rapidly than expected and hike before our prior April 2022 forecast and before current forward guidance suggests”.
  • A key factor is the labour market tightening rapidly with employment “upwards of 250,000 above its pre-pandemic level” and the “unemployment rate has rapidly declined to below our estimate of NAIRU”.
BulletMarketsFixed Income BulletsForeign Exchange BulletsHomepage Bank of Canada Market News

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.