MNI BRIEF: Fed's Collins Sees Sept or Dec Cut This Year

MNI BRIEF: Fed's Collins Urges Patience On Judging Inflation

CORRECTED: MNI BOE WATCH: On Hold And Splits Set To Continue

MNI China Daily Summary: Tuesday, June 18

MNI: PBOC Net Injects CNY84 Bln Via OMO Tues; Rates Unchanged

CHINA PBOC CONDUCTS CNY86 BILLION VIA 7-DAY REVERSE REPOS TUES

MNI: JAPAN MAY EXPORTS +13.5% Y/Y; APRIL +8.3%

MNI: UK MAR-MAY MEDIAN PAY AWARDS +4.6% :Brightmine

MNI: US TSY TICS NET FLOWS IN APR +$66.2B

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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

Barclays on BCCh: Fiscal Policy To Lead Hiking Pace

CHILE
  • Still expect a gradual policy normalization path of 25bp per meeting, with the policy rate at 1.50% by year-end.
  • If the government were to extend the emergency cash transfer program IFE post September (when it is currently scheduled to end), Barclays would expect the BCCh to hike faster, taking the policy rate to 1.75% or 2.0% by year-end.
  • The statement hit a less hawkish tone than expected. It highlighted new downside risks brought by COVID variants, while it did not emphasize any upside risk.
  • Although there could be some mild moderation in the pricing of hikes, they think the market will continue to keep some risk premium in the front-end of the curve.
  • The lack of a hawkish surprise should bring little near-term upside to CLP. However, they think the market has overreacted to global growth fears and would expect a retracement in currencies of countries supported by strong growth, commodities, global demand and hiking cycles, once sentiment stabilizes.
  • As such, Barclays see space for USDCLP to move lower. They remain cautious CLP vs. EM peers, however, given elevated political and institutional risks.
EM BulletHomepageChina Market NewsBulletEmerging Market News
EM BulletHomepageChina Market NewsBulletEmerging Market News

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.