Analysts at ANZ Bank New Zealand explained that the BoC hike was its fifth, but most importantly for markets, it stopped talking about a “gradual approach” with Governor Poloz saying “The reality is the economy”¦ is no longer needing stimulus.” The CAD rose.
Key Quotes:
“In the US, Trump told the Wall Street Journal that he “maybe” regrets appointing Jerome Powell to the role of Fed Chair, commenting that he “almost looks like he’s happy” lifting rates.”
“The softer European PMI data may well see the ECB on the back foot at Thursday’s press conference, acknowledging grounds to proceed with caution.”
“In September, Draghi gave the euro a lift by describing European inflation pressures as “relatively vigorous”.”
“Meanwhile, WTI oil prices are down 13% from their 3 October peak, meaning inflation forecasters at central banks and elsewhere may need to get their pencils out again.”
Share
