MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI: US NOV SUPERCORE CPI (CORE SERVICES EX-HOUSING) 0.342%

MNI: US NOV CPI UNROUNDED M/M 0.313%, CORE 0.308%

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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Credicorp Believe BCCh Could Intervene With USDCLP Between 1,040-1,090

CHILE
  • Chile’s Central Bank could make a foreign exchange intervention if the USDCLP exchange rate rises to between 1,040-1,090, according to Credicorp analysts. The Bloomberg article says Credicorp believe a 75-100bp MPR cut at today’s MPR meeting, along with signs that the key rate would be at a neutral level at the end of the year, could trigger the exchange rate to rise above CLP1,000.
  • At that level “the probability of incorrect price formation increases, which, in Credicorp’s opinion, could lead to an intervention,” analysts said in a note.
  • At the aforementioned range “the nominal misalignment with long-term fundamentals would be intolerable for the BCCh” while the real exchange rate would be at historical highs.
  • Conversely, a more mild 50-75bp cut in April and guidance that the MPR will be close to 5% by the end of the year would calm bets on a weaker peso and could lead to appreciation to the CLP940/950 range temporarily, “but with the risk of a new wave of depreciation if the Fed continues to postpone monetary adjustment”. (BBG)
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