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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.
- The Bank of England hiked rates by 50bp. Markets had priced in a 25% probability of this outcome while none of the analyst previews that we had read (or indeed those surveyed by Bloomberg) expected a 50bp hike.
- The MNI Markets team still thought that a 25bp hike was justified in order to keep inflation expectations under control and we don’t think 50bp will add any benefit in the near-term, unless the Bank was really concerned that inflation would be impacted in the short-term.
- The market’s hypersensitivity to inflation data (and to a lesser extent labour market data) looks justified for the foreseeable future.
- We think that the bar to another 50bp hike is very low and we would need to see a meaningful decline in inflation in order for the MPC to reduce the pace back to 25bp.
- We have read through over 20 analyst reviews and the sellside is now split between a 5.50% and 5.75% terminal rate.
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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.
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