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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.
EXECUTIVE SUMMARY
- The Bank of Canada is almost unanimously expected to hike its overnight rate by another 50bp to 1.5% on Wednesday (28 of 29 analysts on Bloomberg) as part of its journey to neutral, defined as 2-3%.
- The statement-only release is likely to maintain its hawkish tone to keep inflation expectations from de-anchoring but offer little in the way of new guidance – i.e. rates need to increase further with timing and pace guided by the inflation target.
- Hawkish surprises could come from language around moving further into excess demand or inflation being increasingly persistent and broad-based, but the market is likely more sensitive to dovish commentary concerning the global growth backdrop and/or moderation in Canadian housing activity.
- Any further steers will then be left to Dep Gov Paul Beaudry on Thursday with the Economic Progress Report.
PLEASE SEE THE FULL NOTE AT THE BELOW LINK:
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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