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MNI BRIEF:ECB June Cut 'May Be Appropriate', Not July-Schnabel

(MNI) LONDON
(MNI) London

ECB Executive Board member Isabel Schnabel pushes back on prospects of back-to-back rate cuts in early summer.

LATEST INSIGHT

MNI POLICY: BOJ Wants Stable FX Market To Cut JGB Buying

The BOJ will wait for the yen to stabalise before reducing JGB buying to avoid rate hike speculation, MNI understands.

Political Risk

Pyongyang Fires Short-Range Missiles In Response To US-SK Drills

The South Korean military has confirmed that North Korea has fired several short-range missiles into the Sea of Japan, the second ballistic missile test within the past four weeks with the last coming on 22 April, Last week Supreme Leader Kim Jong Un oversaw the testing of a new multiple rocket launcher system. The launches come after South Korea and the United States held jet exercises, with AP reporting "two South Korean F-35As and two U.S. F-22 Raptors were mobilized for combined aerial exercises over the central region of South Korea. North Korea is extremely sensitive to the deployment of sophisticated U.S. aircraft."

  • The missile tests come at a time of heightened tensions on the peninsula, and between North Korea and the West more broadly. Accusations that North Korea has sold weapons to Russia for use in its invasion of Ukraine have led to a forceful pushback from Pyongyang.
  • Kim's sister, Kim Yon Jong - an outspoken critic of the West and the South Korean gov't who has seemingly gained increasing prominence in recent years - said, “The hostile forces are misleading the public opinion with a false rumor that the weapon systems produced by the DPRK are ‘for export to Russia...We have no intention to export our military technical capabilities to any country or open them to the public,”

N. Korea Test-Fires Unidentified Ballistic Missile

South Korean Joint Chiefs of Staff told the press that North Korea test-fired an unknown ballistic missile into the East Sea today. The details of the launch are currently being analysed.

  • This comes 25 days after North Korea conducted a drill of short-range ballistic missiles (SRBM) simulating a nuclear counterattack to asses the reliability of the system of command, management, control and operation of its nuclear force.

China's Potential Response To US Tariffs

MNI discusses China's potential responses to U.S. tariffs on new energy products --On MNI Policy MainWire now, for more details please contact sales@marketnews.com.

Outlook For BoJ JGB Bond Buying Dependent On The Yen

The Bank of Japan wants to see stability return to the yen before it cuts its JGB buying --On MNI Policy MainWire now, for more details please contact sales@marketnews.com.

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