BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

VIEW CHANGE: BofA: BOE wants to stop hiking at first opportunity; 5.50% terminal

BOE
  • “The BoE seems to be hoping that higher for longer rates will work, rather than the alternative of hiking enough to create a downturn and cut inflation quickly. They prefer higher for longer probably in part because it may run fewer financial stability risks.”
  • “We disagree with the BoE's arguments. Simultaneous upside wage and inflation surprises in our view indicate an entrenched inflation problem.”
  • “Clearly the BoE wants to keep its options open, is not required to always guide the market, and its bias is to stop hiking at the first opportunity. Therefore, we forecast the BoE to stop hiking after September and to hike 25bp in August.”
  • “We maintain our call for two more 25bp rate hikes (August and September) and raise terminal as a result to 5.5% from 5.25%. Given the BoE's seeming preference for higher for longer combined with our view that the entrenched inflation problem is worsening, we remove the rate cut we previously expected in 2024.”
  • “We see risks skewed to higher terminal, a recession and more cuts and cannot rule out that the BoE may pause hikes later this year only to hike further in the new year as inflation proves more stubborn than they expect.”
HomepageBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

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.