Free Trial
POLAND

WIBOR FIX - 27th September 2022

GILT AUCTION RESULTS

0.125% Aug-31 linker

HUNGARY

Bubor Rate - 27th September 2022

FOREX

GBP Steadies as USD Index Sees Rare Relief

OIL OPTIONS

ICE Brent November Option Expiry Today

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

VIEW: J.P.Morgan: BoK Signals 25bp Follow-Up Hikes

BOK

J.P.Morgan note that “in all, the Governor and the MPC statement provided a clear signal to preemptively respond to prevent inflation being anchored materially above the target, yet with specific forward guidance for gradual (25bp) increases of the policy rate in the follow-up meetings. Such straightforward communication decreased the uncertainties around the monetary policy decisions going forward, yet we believe that risks to timing and magnitude of further policy rate hikes still remain due to lingering uncertainty (or upside risks) in inflation path. That is, the forward guidance was based on an underlying assumption that inflation path should not materially deviate from the BoK’s (currently internal) projection, thus core prices’ trend growth remains a key to watch. As a reference point, we currently assume about 0.3% M/M, sa monthly gain in core goods and service prices in H222, slowing down from 0.7% monthly gain in private service prices and 0.5% in non-oil goods prices in Q2 averages.”

157 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.

J.P.Morgan note that “in all, the Governor and the MPC statement provided a clear signal to preemptively respond to prevent inflation being anchored materially above the target, yet with specific forward guidance for gradual (25bp) increases of the policy rate in the follow-up meetings. Such straightforward communication decreased the uncertainties around the monetary policy decisions going forward, yet we believe that risks to timing and magnitude of further policy rate hikes still remain due to lingering uncertainty (or upside risks) in inflation path. That is, the forward guidance was based on an underlying assumption that inflation path should not materially deviate from the BoK’s (currently internal) projection, thus core prices’ trend growth remains a key to watch. As a reference point, we currently assume about 0.3% M/M, sa monthly gain in core goods and service prices in H222, slowing down from 0.7% monthly gain in private service prices and 0.5% in non-oil goods prices in Q2 averages.”