- Maintains hawkish bias
- “Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate”
- China decelerating more than anticipated
- Underlying momentum remains at pace roughly in line with potential
- Tentative signs of slowing in household spending
- CPI lower than expected but should return to target over next 12 months
- Full statement
The OIS market is priced for 14 basis points of hikes over the next 12 months. Overall, very little change from the BOC today as they, understandably, want to see what happens in the US, Europe and China before tipping their hand.
Offers ahead of 0.9900 while 0.9842 remains key support.
