Central bankers are pushing back on 2023 rate cut expectations. And they're succeeding.
As of Friday's close, market expectations are now down to just a 4 in 10 chance of BoC easing this year, and only a single 25 bps rate cut at that. Following last month's Silicon Valley Bank meltdown, markets were pricing in cuts by this summer.
Meanwhile, North American funding costs are running higher. For example, Canada's four-year swap, a leading fixed-rate indicator, is up 44 bps in the last ten days.