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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.
BOE
BoE external member Catherine Mann's speech (text here from the BoE) doesn't contain much in the way of surprises - we knew coming into today based on previous comments she had favoured going fast and hard in frontloading rates to keep inflation expectations under control.
- And while she didn't explicitly give anything away on her preference for the September MPC's hike size, her comments that "acting more forcefully now, to ensure that the drift [in medium-term inflation expectations] does not become the norm" has helped September BoE pricing tick up to a new high of 72bp (before fading, see chart).
- However, there are only smaller changes further down the futures strip, in keeping with the front-loaded approach of Mann's speech. And Sterling has remained virtually unchanged vs EUR and USD.
- More to come Wednesday with the Treasury Select Committee of Bailey, Pill, Mann and Tenreyro (with the annual reports of Mann and Tenreyro due to be released too). This will be the last scheduled appearance of MPC members ahead of next week's meeting and monetary policy decision.
Sept 2022 BoE Hike Size Pricing, ppSource: BBG, MNI
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.
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