China International Capital Co said US October CPI (seasonally adjusted MoM)
rose 0.4% (Sep 0.6%); core CPI SA MoM rose 0.3% (Sep 0.3%), both above market
expectations. Core CPI SA MoM has recorded a 0.3% increase for a third
consecutive months, supporting further Fed tightening. While Fed Governor Waller
has not ruled out a 50bp move in December, the firm judges policy is not clearly
behind the curve and financial conditions have tightened marginally, so the
necessity to accelerate hikes is limited; it maintains a base case of a 25bp
December hike and says the tightening pace remains gradual.
