MNI China Press Digest Aug 2: Hukou, Property, State Grid

MNI: PBOC Sets Yuan Parity Higher At 7.1376 Fri; -0.90% Y/Y

CHINA PBOC CONDUCTS CNY1.17 BILLION VIA 7-DAY REVERSE REPOS FRI

CHINA SETS YUAN CENTRAL PARITY AT 7.1376 FRI VS 7.1323

MNI CNB WATCH: Cut Pace Slows To 25Bps, Price Pressures Remain

MNI BRIEF: China Steel Market To Remain Subdued In August

Australia Jun New Loan Commitments +1.3% For Housing

More Detail On Today's CPI, BoK Likely On Hold Later In August

CPI Steady - Temporary Factors Driving For Now

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

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

Deutsche Bank Expect BCCh To Cut To 4% By July

CHILE
  • Deutsche Bank view the last couple of BCCh policy decisions as clear indications of the central bank’s preference for a speedy and full normalisation of monetary conditions, having gained conviction in the benign inflation outlook. As a result, they now expect the policy rate to be cut to 4% by July (vs 4.5% before).
  • In their view, CLP shows vulnerability to a faster easing cycle by the BCCh. At current levels, valuations are stretched, but markets may test BCCh’s prioritisation of rates vs. FX, while pass-through is low. They see USDCLP closer to 950 than 900 in the coming weeks, in the absence of a material pick up in USD sales by the Ministry of Finance and would sell USDCLP downside to buy MXN and BRL on weakness.
  • On rates, Deutsche Bank had expected the 100bp policy rate cut yesterday, but see risk skewed toward even faster cuts and/or a lower terminal policy rate than priced (possibly 3.0-3.5%). As a result, they keep their 6-month Camara receiver on this view and expect the curve to bull-steepen on a very low term-premium and the yield differential against US rates.
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.