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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.
ECB
A muted market response to comments by BdF/ECB's Villeroy this afternoon that rates would peak within the next three meetings - saying “we already have completed most of our rate-hiking journey, and we are clearly in restrictive territory...we have three possible Governing Councils either for hiking or pausing.”
- Eyeing long lags in the impact of monetary tightening, he noted "we are presently closer to the upper range" on rates, but pointed to a need to keep rates higher for longer with underlying price pressures remaining troublesome.
- "Persistence is now more important than speed; the duration for which we will maintain rates is now more important than the precise terminal level we will reach. Or in other words, for interest rates as with ballistics, “longer” is becoming more significant than “higher”.""
- His general outlook accords broadly with market pricing.
- Indeed, ECB hike pricing was little changed post-Villeroy comments and is flat on the day, with the terminal depo Rate seen at 3.78% by October (53bp of further hikes left in the cycle), including a 95% prob of a 25bp hike on June 15th and a second 25bp hike delivered either by July or September.
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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