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Why MNI
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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.
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Free AccessJPMorgan On BCCh Policy Following Minutes
- JPMorgan noted that the 50bp option was adopted unanimously for the policy rate to converge to 11.25%, a level that is high enough to secure convergence to 3% by the policy horizon given the current macro backdrop. In the eyes of the Board, the decision to hike 50bp also “made it easier to give a clearly neutral bias to the next rate movement " and allowed emphasizing the policy rate would be kept stable for as long as necessary to ensure the convergence of inflation to 3% within the two-year policy horizon.
- JPMorgan’s base case assumes the policy rate remains unchanged at 11.25% until early 3Q23, declining to 8.5% by December 2023. Such a nominal policy rate would still be consistent with an ex-post real rate close to 3%, and ex-ante rates around 4.0% and 3.3% when deflating by JPM forecasts for inflation 12- and 24-m ahead, respectively.
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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.