Ueda Chairs First BOJ Meeting, and US and EMU Provide First Estimate of Q1 GDP: The Week Ahead

As April draws to a close, the systemic stress in the banking sector continues to subside, and the market is turning its attention to likely rate hikes by Federal Reserve and European Central Bank in early May. Although, as in March, the market sees the May hike to 5.25% to be the last Fed hike. Before the bank stress, the swap market had been leaning to a 5.75% terminal rate. It is still early to fully appreciate the magnitude and duration of the tightening in lending standards. Yet, to assume that it is worth 50 bp of Fed tightening seems premature. Given the still robust labor market, elevated service prices, and

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http://www.marctomarket.com/2023/04/uedas-chairs-first-boj-meeting-and-us.html