In today’s briefing:
- CX Daily: China to Support Domestic Share Trading of Foreign-Invested Companies
- ECB: Aiming Further and Rewriting Rules
- A Sudden Change of Heart?
CX Daily: China to Support Domestic Share Trading of Foreign-Invested Companies
China to support domestic share trading of foreign-invested companies
Civil service to recruit record numbers next year, including more graduates
Trending in China: Social media users cheer Rishi Sunak’s appointment as U.K.’s prime minister
ECB: Aiming Further and Rewriting Rules
- The ECB hiked by another 75bps in October, taking the total change to 200bp. Guidance of more hikes now extends beyond neutral, consistent with our forecast.
- Terms for the TLTRO-III are being rewritten to remove the arbitrage potential between it and the rising deposit rate. Extra repayment windows reduce the punitive effect.
- We still expect the ECB to slow its hiking pace in December to 50bps, then 25bps in February and March 2023 to a 2.5% peak in the deposit rate.
A Sudden Change of Heart?
- Over the last two weeks, several G10 Central Banks came across as ready-to-pivot.
- Australia, Canada and now Europe are starting to weigh pros and cons of calibrating monetary policy with a single objective: bringing inflation down to 2%, as soon as possible.
- Instead, they are beginning to consider a slowdown in the pace of hikes and most likely a complete pause relatively soon.
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