MNI: PBOC Net Injects CNY40 Bln Via OMO Fri; Rates Unchanged

CHINA PBOC CONDUCTS CNY50 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1268 Fri; -0.32% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1268 FRI VS 7.1270

MNI: BANXICO HOLDS INTERBANK RATE STEADY AT 11.00%

MNI BRIEF: Fed's Bowman Says Policy Appears To Be Restrictive

MNI BRIEF: Japan June Tokyo Core CPI Rises 2.1% Vs. May 1.9%

Japan May Ind. Output 2.8% M/M; Shipments +3.5% M/M

MNI BRIEF:Japan May Factory Output Hits First Rise in 2 Months

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

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

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

Lane: Need lower underlying inflation for rate hikes to end

ECB

Reuters has published an interview with ECB Chief Economist Philip Lane and the initial headlines appear to be relatively balanced, but seem to point to rates being higher for longer. He says that the case for 50bp in March remains solid (the ECB has well telegraphed this) but these headlines in isolation would provide a broadly dovish tilt:

  • POSITIVE SUPPLY SHOCKS SINCE DECEMBER, RATE HIKES, HAVE CURBED INFLATIONARY PRESSURES
  • INTERMEDIATE STAGE PRICING PRESSURES BEGIN TO FADE
  • FORWARD-LOOKING INDICATORS FOR FOOD, ENERGY, GOODS SUGGEST INFLATION SLOWDOWN
He balances out these comments by also saying that we need lower underlying inflation (and lower inflation projections) for rate hikes to end and that rates should be held at their peak for some time which would mean that rates would be in restrictive territory for a "number of quarters".
  • In terms of initial market reaction, there is little movement in EURUSD while Bund futures are at their lows of the day (but have not really moved on the story).
Fixed Income BulletsHomepageBulletMarketsEmerging Market NewsForeign 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.