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BCB Economist Survey Due, BRICS Summit & Jackson Hole in Focus

LATAM
  • Brazil central bank will release the weekly Focus Survey, the first since the notable gasoline price hike last week. Notable data points this week include CPI data for both Mexico & Brazil as well as Peru second quarter GDP. Later in the week, Banxico will release the minutes from their last meeting.
  • As noted, China’s decision to leave the five-year plus maturity for the Loan Prime Rate (LPR) unchanged at 4.2% shocked the market Monday, after traders and analysts had bet on a 10-15bp cut in line with the PBOC’s decisions last week. The unchanged five-year LPR could mean that measures to reduce outstanding mortgage rates are coming soon, with the PBOC mindful of the impact of a lower benchmark on lenders’ already compressed margins, according to the chief macro analyst at BOC International.
  • The BRICS summit will take place in South Africa from August 22 to 24. Key objectives include the prospect of expansion of the bloc, intra-bloc relations, the implications for trade, and the question of de-dollarisation (MNI).
  • The Fed's Jackson Hole conference is the week's key event, with announced speakers so far including Chair Powell and ECB Pres Lagarde on Friday.

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