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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.
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Free AccessStubborn M/T CPI Projection Means Not at Peak Yet
- In hiking rates 25bps, the bank have signalled that they are approaching the peak rate of the cycle, with a final 25bps hike in September likely to precede a prolonged pause with a deposit rate at 2.00%. The Bank also reaffirmed their language on currency, providing further evidence that FX management will remain a key channel through which they can control financial conditions.
- The 25bps rate hike came despite partial pricing for a 50bps step, and accompanied a revision lower for short-term CPI projections – these ticked lower into year-end 2023 (2.0% for Q4 from 2.3% prev) but were revised higher across 2024 by 0.2/0.3ppts. This leaves the prospect for prices looking brighter into year-end and alleviates the need for any further 50bps steps at the bank – however medium-term CPI projections (which assume stable rates of 1.75%) show the need to do more to anchor expectations next year
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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.