MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Higher At 7.1058 Thurs; -4.80% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1058 THURS VS 7.1048

MNI China Daily Summary: Wednesday, April 24

MNI BRIEF: China Steel Demand Q2 Limited Rebound

France Manufacturing Sentiment Reverses Year-To-Date Gains

MNI: FRANCE APR MANUF SENTIMENT AT 100

US Treasury Auction Calendar

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

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Central Bank July Meeting Minutes Scheduled

CHILE
  • As a reminder, at the July 13 meeting, the BCCh Board decided to raise the monetary policy interest rate by 75bp to 9.75% in a unanimous vote. This was above the modal forecast within the Bloomberg survey and was against prior guidance that the hiking pace would decelerate from the previous meeting. However, recent developments regarding inflation and the weaker CLP had prompted several analysts to revise their forecasts to more hawkish predictions.
  • Goldman Sachs expect the minutes to show that the directors remain concerned about the persistence of inflation and the behavior of inflation expectations within the relevant policy horizon.
    • Furthermore, GS expect to see concerns that a more pronounced pass-through following the strong depreciation of the CLP would weigh on domestic prices, exacerbating the already challenging inflation dynamics. GS highlight that any potential discussion and evaluation in the minutes regarding intervention in the FX market was likely superseded by the FX market intervention program announced on June 14.
  • They also expect the Committee to recognize the complex macroeconomic environment and the high degree of domestic and global uncertainty.
  • GS will be particularly attentive to any discussion on the path for the policy rate, and what developments prompted the MPC to revise their previous guidance on the magnitude of future policy rate hikes. Additionally, they will be looking for the following:
    • Discussion about whether a larger pass-through could lead to a feedback cycle of currency depreciation and rising inflation, thereby rendering inflation more persistent.
    • Discussion on wage growth dynamics and the risk of intensifying cost-push pressures on inflation.
    • Importance of the FOMC and core central banks expected policy rate path for the calibration of the domestic policy rate.
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.