MNI BRIEF: Canada Debt Management Strategy Highlights

CANADA BUDGETS 2024-25 DEFICIT OF CAD39.8B OR 1.3% OF GDP

MNI BRIEF: BOC's Macklem - Inflation Moving In Right Direction

MNI INTERVIEW: IMF's Adrian Warns Of Inflation Risk To Markets

MNI EM China Daily Summary: Tuesday, April 16

MNI BRIEF: Industrial, Service Rebound Buoys China's Q1 GDP

AUDUSD Falls To Fresh 5-Month Low, USDMXN Rises Above 17.00

EZ/UK Bond Supply Calendar: Greece, Italy, UK, Germany Wednesday

EZ/UK T-Bill Calendar: Portugal, EU Auction Wednesday

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI BoK Preview - January 2023: 25bps Hike; Then Pause

BOK
  • Tomorrow the BoK is expected to deliver a 25bps hike, which would take the policy rate to 3.50%. This isn’t a uniform expectation with 5 out of 16 economists surveyed by Bloomberg forecasting no change, while the remainder are forecasting a 25bps hike. Our base case is for a 25bps hike and then a pause by the BoK.
  • Tightening that has already taken place since 2021, along with signs of softer growth conditions across the domestic and external sectors, coupled with peaking headline inflation, are all factors arguing for a pause. Much stronger won FX levels compared to last early Q4 lows also argues, at the margins, for less aggressive monetary policy action.
  • Sticky core inflation, which remains well above the target, is a powerful offset though and BoK's clear focus remains on bringing inflation back down. If the BoK hikes we expect the Governor will give hints of a pause to assess the impact of previous tightenings and success in bringing inflation back to target.
  • See the full preview here:
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

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.