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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.
Source: Bank of Canada
EXECUTIVE SUMMARY
- The BoC surprised markets for the third time this year with a downshift to a 50bp hike to 3.75%, contrary to analyst expectations leaning towards 75bps and with ~70bp priced.
- The driver was a weaker growth outlook giving the supply side more time to catch up with demand.
- With Governor Macklem saying the Bank is getting closer to the end of the tightening phase but not quite there yet and indicating the debate ahead will be 25 vs 50bp moves, the market terminal rate was cut ~25bps to a little under 4.25% with reviewed analysts also seeing 4.25% on balance.
- In focus ahead of the Dec 7 decision: two labour reports, one CPI report and, of renewed attention, two GDP prints. Macklem headlines BoC commentary, speaking Nov 10, but data dependency appears key.
FULL REPORT HERE:
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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