Free Trial
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:
- BCCh surprise markets, raising rates by 125bps vs. Exp. Hike of 100bps
- Statement shows a board clearly concerned with external inflation environment
- Hawkish statement puts policy closer to bank’s ‘worst case’ scenario
Full piece including summary of sell-side analyst views here:
The BCCh took markets by surprise in May, raising rates by 125bps against expectations for a 100bps rate rise. This ran against markets primed for the BCCh to slow the pace of tightening more aggressively and extends the bank’s tightening cycle to a total of 775bps.
The accompanying statement showed a board that remains of the view that the inflation outlook is a cause for concern, and that view has intensified since the prior meeting. As such, additional rate rises later this year are likely, and this week’s more activist approach could prompt markets to revise higher their terminal rate forecasts.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok