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: RBC no longer looks for BOE to wait until 2025 to cut

BOE
  • "The vote split was in line with our pre-meeting assessment though we had expected that Jonathan Haskel rather than Megan Greene would be the Committee Member to change their vote from ‘hike’ to hold’."
  • "Recognising the changes to the language and the first indications that the MPC are beginning to think about cuts to Bank Rate we move forward our expectation of when the MPC will deliver its first rate cut into 2024. We still judge that the MPC will exercise a degree more caution than its peers, however, and see that rate cut coming later, at the August meeting."
  • "Given the lags in monetary policy transmission which the MPC have spoken about previously and how they have approached cutting cycles previously... we think it moves relatively quickly after that delivering three further rate cuts at each successive meeting to bring Bank Rate to 4.25% by the end of the year. After that we pencil in two more rate cuts in 2025 at the February and May MPR meetings to bring bank rate to where we see ‘neutral’, between 3.5% and 4%, by mid-2025"
  • Note that RBC's previous call of a first cut in 2025 was the only analyst preview we read in the build up to the February meeting that expected the first cut later than September 2024.
Homepagemarkets-real-timeCreditBulletMarketsFixed 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.