DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

JPM: Hard To See January Meeting Used To Signal Easing In March

CANADA
Homepagemarkets-real-time Bank of Canada Market NewsBulletJPMorgan Market News Fixed Income BulletsForeign Exchange BulletsMarkets
  • JPMorgan see the BoC on hold at 5% with spotlight “on what it says and not on what it does. Our focus will be on updated growth and inflation forecasts, any adjustment to the forward guidance, and the language in the press conference.”
  • “Recent comments have pushed back against an early pivot from the Bank’s current hawkish guidance. Considering the current inflation backdrop it’s hard to see the Bank using the January meeting to change the guidance and signal that it intends to ease policy at the subsequent meeting in March.”
  • JPM continue to expect a first cut in 2Q24 as “by then the Bank will have a much better sense of the downward trend in inflation and wage growth that we anticipate.”
  • “Some important aspects of the 4Q BOS point to continued normalization. The survey showed that inflation expectations continued to ease, albeit gradually, and both expected corporate pricing behavior and expected wage growth point to more normalization. More firms are reporting that the size of their price changes will continue to moderate over the next 12 months on the back of weaker demand and heightened competition and average expected wage increases continue to trend downward.”
197 words

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.
  • JPMorgan see the BoC on hold at 5% with spotlight “on what it says and not on what it does. Our focus will be on updated growth and inflation forecasts, any adjustment to the forward guidance, and the language in the press conference.”
  • “Recent comments have pushed back against an early pivot from the Bank’s current hawkish guidance. Considering the current inflation backdrop it’s hard to see the Bank using the January meeting to change the guidance and signal that it intends to ease policy at the subsequent meeting in March.”
  • JPM continue to expect a first cut in 2Q24 as “by then the Bank will have a much better sense of the downward trend in inflation and wage growth that we anticipate.”
  • “Some important aspects of the 4Q BOS point to continued normalization. The survey showed that inflation expectations continued to ease, albeit gradually, and both expected corporate pricing behavior and expected wage growth point to more normalization. More firms are reporting that the size of their price changes will continue to moderate over the next 12 months on the back of weaker demand and heightened competition and average expected wage increases continue to trend downward.”