Free Trial
SILVER TECHS

Bearish Focus

HUNGARY

10Y Yield Oscillates Around 8%

BUNDS

Close small opening gap

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Ramsden looking for more hikes - but there is little to change our view

BOE
  • Ramsden's comments in a recently published Bloomberg interview probably aren't too surprising. Recall that he was one of the four MPC members who had voted for a 50bp hike in February. He said that "we’re not there yet in terms of how far monetary policy has to tighten... I‘m still very, very supportive of the forward guidance that there may well need to be further tightening in the coming months.”
  • He also said that “I don’t think we’ve gone far enough yet on bank rate, but I do think that what we’ve already done is having an impact.” and that “Given what we know about the UK labor market, I wouldn’t be surprised if it turned out to be a bit tighter... I think there are upside risks on inflation the medium term.”
  • We had written in the MNI BOE Review that we think there will be a 25bp hike in June and probably another in August, but that further hikes will be more questionable as the growth outlook sours (albeit we wouldn't rule out more). Ramsden's comments today don't change our view and we still think that market pricing of 107bp more hikes in 2022 looks excessive (but not out of the realms of possibility).
  • The Dec-22 SONIA futures contract opened 6 ticks higher and has since reversed 4 ticks to be 2 ticks up on the day.
226 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Ramsden's comments in a recently published Bloomberg interview probably aren't too surprising. Recall that he was one of the four MPC members who had voted for a 50bp hike in February. He said that "we’re not there yet in terms of how far monetary policy has to tighten... I‘m still very, very supportive of the forward guidance that there may well need to be further tightening in the coming months.”
  • He also said that “I don’t think we’ve gone far enough yet on bank rate, but I do think that what we’ve already done is having an impact.” and that “Given what we know about the UK labor market, I wouldn’t be surprised if it turned out to be a bit tighter... I think there are upside risks on inflation the medium term.”
  • We had written in the MNI BOE Review that we think there will be a 25bp hike in June and probably another in August, but that further hikes will be more questionable as the growth outlook sours (albeit we wouldn't rule out more). Ramsden's comments today don't change our view and we still think that market pricing of 107bp more hikes in 2022 looks excessive (but not out of the realms of possibility).
  • The Dec-22 SONIA futures contract opened 6 ticks higher and has since reversed 4 ticks to be 2 ticks up on the day.