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.
All members of the Bank of England Monetary Policy Committee were agreed on the need to take 'forceful' action to get inflation back to the 2,0% target, Deputy Governor Dave Ramsden said Friday, indicating that the November debate is set to be over the scale of the hikes needed,
Market pricing has been indicating that there will be a very large rate hike in November with questions over whether it will be a 100 basis points or even more. although divisions on the MPC over the scale of the increase look inevitable.
Ramsden said that the MPC has been clear that it "would respond forcefully as necessary" adding "I think the central question for all nine of us on the MPC is how forceful do we need to be." Key questions for him, which will determine the size of the hike needed, included whether there was "any evidence that the tight labour market is easing;" the impact of the government's budget on demand and what is the message from financial market movements.
Markets are currently pricing rates past November to rise further, with the implied curve currently pointing to rates at just over 5.5% next summer.
Source: Bloomberg
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.