MNI China Daily Summary: Friday, December 27

MNI BRIEF: BOJ: Rate Hike Chance Nearing; Mull Patiently

MNI: PBOC Net Injects CNY6.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1893 Fri; -2.12% Y/Y

MNI JAPAN NOV FACTORY OUTPUT DROPS 2.3% M/M; OCT +2.8%

MNI JAPAN NOV JOBLESS RATE AT 2.5%, UNCHANGED FROM OCT

US EIA:NAT GAS STORAGE -93 BCF TO 3,529 BCF DEC 27 WK

MNI: US JOBLESS CLAIMS -1K TO 219K IN DEC 21 WK

MNI: US REDBOOK: DEC STORE SALES +5.0% V YR AGO MO

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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TURKEY: CBRT Starts Easing Cycle with 250bp Cut, Minimum Wage Raised by 30%

TURKEY
BulletEM BulletEmerging Market News
  • The CBRT started its easing cycle with a 250bp cut to the one-week repo rate yesterday, taking it to 47.5%. In the accompanying policy statement, the central bank transitioned to data dependent guidance, noting that decisions will be made “prudently on a meeting-by-meeting basis” with a particular focus on the inflation outlook. The CBRT also announced that it will be switching from monthly meetings to eight meetings a year in 2025. Our full review of the decision will be released later today.
  • The monthly minimum wage has been raised to TRY 22,104 ($627) for 2025 from TRY 17,002, representing an increase of 30%. That figure sits roughly in the middle of the range that was predicted by local press ahead of the announcement and is broadly in-line with expectations of year-end inflation for 2025.
  • Data from the central bank yesterday showed 12-month household inflation expectations fell to 63.1% in December from 64.1% in November. Meanwhile, the real-sector's inflation expectation fell to 47.6% from 47.8%. There are no data releases scheduled for today.
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  • The CBRT started its easing cycle with a 250bp cut to the one-week repo rate yesterday, taking it to 47.5%. In the accompanying policy statement, the central bank transitioned to data dependent guidance, noting that decisions will be made “prudently on a meeting-by-meeting basis” with a particular focus on the inflation outlook. The CBRT also announced that it will be switching from monthly meetings to eight meetings a year in 2025. Our full review of the decision will be released later today.
  • The monthly minimum wage has been raised to TRY 22,104 ($627) for 2025 from TRY 17,002, representing an increase of 30%. That figure sits roughly in the middle of the range that was predicted by local press ahead of the announcement and is broadly in-line with expectations of year-end inflation for 2025.
  • Data from the central bank yesterday showed 12-month household inflation expectations fell to 63.1% in December from 64.1% in November. Meanwhile, the real-sector's inflation expectation fell to 47.6% from 47.8%. There are no data releases scheduled for today.