MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Japan Nov CGPI Rises 3.7% Y/Y, Import Prices Drop

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

MNI BoK Preview - August 2022: Back To A 25bps Hike Pace

BOK

EXECUTIVE SUMMARY

  • A 25bps hike is our base case and 16 out of 17 surveyed economists by Bloomberg expect such a move, with one forecasting a 50bps hike. A Reuters survey paints a similar picture. A 25bps move would take the policy rate to 2.50%, which would be fresh highs back to mid-2014. This also comes after last month’s ‘out-sized’ 50bps hike.
  • Since the last policy meeting in mid-July, inflation data continue to show firm upside pressure, although the pace of upside surprises has eased somewhat. There is little doubt the BoK will also raise its 2022 inflation forecast. The rough consensus looks for this to rise to the low to mid 5% range. One encouraging piece of news from yesterday’s consumer sentiment report, besides the fact that headline sentiment rose, was that household expectations for inflation eased back to 4.3% from 4.7% in July.
  • Such a backdrop tilts the risks towards a 25bps hike at tomorrow’s meeting. This also appears to be the stated preference of the BoK. Recall after the last policy meeting Governor Rhee stated that 25bps increments would be the desired pace going forward, although larger moves weren't ruled out.
  • Click here to full the full preview:
    • EM BulletFixed Income BulletsHomepagemarkets-real-timeBulletMarketsEmerging 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.