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.
IB futures are back to pricing a cash rate of ~3.10% come the end of the RBA’s December meeting (per BBG WIRP), little changed vs. levels observed at the end of Tuesday’s volatile session, while terminal rate pricing continues to hover around the 3.50% mark. A quick reminder that we still deem market pricing surrounding the terminal rate to be somewhat aggressive, given the fact that the RBA is already making references to higher interest rates weighing on household consumption (owing to a record high debt/income ratio), growing recessionary fear in the U.S. & Europe which is resulting in deeper Federal Reserve rate cuts being priced into ’23, organic RBA tightening already set to take place in ’23 and the required velocity of rate hikes that the RBA would have to pursue to achieve the tightening priced into markets against this backdrop.
Fig. 1: RBA Meeting Dated Dec ’22 Cash Rate Pricing
Source: MNI - Market News/Bloomberg
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.