BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

New Home Sales Activity And Prices Continue To Cool

US EIA: CRUDE OIL STOCKS EX SPR -3.74M TO 436.5M JUL 19 WK

Services PMI Gains Continue To Diverge From Soft Manufacturing

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Analysts Highlight Concerns With AMLO Banxico Pick

MEXICO
  • Victoria Rodriguez, the deputy finance minister for spending tapped by President AMLO to lead the Banxico board, said she's committed to complying with Banxico's autonomy, speaking in a twitter video.
    • Rodriguez added she's committed to combating inflation and to not touching international reserves.
  • Barclays strategists closes recommendation to buy USD/MXN put spreads and recommends to pay the 2s10s TIIE spread.
    • "The initial market reaction to the nomination (weaker MXN and steeper yield curve) could reflect concerns that the new candidate might not be independent enough from the current administration and/or doubts in terms of her technical background, qualifications and knowledge of monetary policy conduction"
  • JPMorgan share these concerns: "While she has long experience in public finances and this should be enough to consider her as a suitable candidate for the Central Bank given the ambiguous requirements specified in the Bank's Law, it is concerning that she lacks experience as a central banker and on monetary policy."
  • While they had concerns with Herrera – "He actively participated in the monetary policy committees of Banxico (no voting rights) and the Exchange Rate Commission, and his equally active role in dealing with external policymakers and international financial institutions allowed him to gain policymaker experience ahead of his nomination."
  • However, JPM also believe that the solid staff in Banxico, and a board that has gained experience in the last three years, should appease some of the most important concerns.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.